Legault government may postpone Quebec's return to balanced budget

The Legault government may postpone its goal of returning to a balanced budget by 2027.

Finance Minister Eric Girard explained on Thursday that Quebec's economy was slowing down and that government revenues were falling while spending was rising.

The wage increases granted to public sector employees are higher than those forecast in the economic update, Girard said.

"I'm telling you the truth," he said at a news scrum on Thursday morning on the sidelines of the Coalition Avenir Québec (CAQ) pre-sessional caucus, which is being held in Sherbrooke.

"The stagnating economy is putting pressure on revenues, public sector negotiations are putting material pressure on spending, and that's certain to have an impact," he explained.

"It's mathematical: at this stage, the deficits are going to be bigger," said Girard, who refused to reiterate his objective of returning to a balanced budget by 2027-2028.

When asked by reporters what would happen next, the finance minister replied that "everything will be disclosed in the budget," which will be presented later this spring.

Cheques from $400 to $600: extension of the eligibility period

Girard also announced Thursday that he was extending the deadline for receiving the $400 to $600 cheque that had been promised to taxpayers at the end of 2022 until June 30.

He explained that his announcement affected around 65,000 Quebecers eligible for financial assistance who had not filed their tax returns for 2021 by the deadline of June 30, 2023.

"Because the situation is extremely difficult, I have asked Revenu Québec to extend the eligibility period for receiving the $400 to $600," said Girard.

The measure will cost $38 million, but this sum has already been set aside, he added.

From Thetford Mines, Quebec Liberal Party (PLQ) interim leader Marc Tanguay accused the Legault government of mismanaging public finances.

"When they came to power in 2018, there was $7 billion in the coffers. They spent it completely ... We would not have sent ... cheques ... purely for electoral purposes," he said. "This is a bad government that has lost control of public finances."

This report by The Canadian Press was first published in French on Jan. 25, 2024.