Most Quebecers to get $400 or $600 from the government to fight inflation

The Legault government is handing out cheques to Quebecers ahead of the holidays.

Finance Minister Eric Girard announced at a news conference Wednesday that as of December, the government will give out either $400 or $600 to individuals who qualify. 

• $600 cheques will go to people who earned less than $50,000 in 2021
• $400 cheques will go to those who earned between $50,000 and $100,000 in 2021

Calling the measure "simple and effective," Girard is following through on an election promise made by the CAQ to help taxpayers cope with the high inflation of the past few months, which has reached between 6.5 and 7 per cent.

Girard is calling the payment a one-time, cost-of-living adjustment, adding that Quebecers do not have to apply for or it or request it. The payment will even go to people who owe the government money.

Those who are signed up for direct deposit will receive the money in their bank accounts, and those who are not will receive a cheque.

The adjustment will cost the government about $3.5 billion, prompting some criticism that it could make inflation worse.

Girard, though, said the government considered other methods to provide relief, but ultimately decided this was the best way to help Quebecers. 

"We really believe that Quebecers are the best to determine what to do with this cost of living adjustment," said Girard. "We really think that they will decide whether they’re in a position to save it, reduce their debt or will need to spend it immediately because they have immediate needs."

Cheques will be sent to 6.5 million taxpayers who qualify.

This is the second handout from the Quebec government this year as an inflation-fighting measure, after the government sent $500 to Quebecers making under $100,000 in the spring.

Girard said he doesn't plan to send a third payment to Quebecers, adding that he expects inflation to stop rising as economic growth slows. Girard added that he thinks there is a 50 per cent chance Quebec's economy will be in recession in 2023.

Girard also said he will provide a financial and economic update on Thursday, Dec. 8.

BEWARE OF SCAMS

Girard is also warning Quebecers to be vigilant in the coming weeks for scams.

Revenu Quebec will not be communicating with anybody via text message or e-mail about sending out the money. Anyone who receives a message directed them to follow a link to receive your payment should take note – that's a scam.

PAYOUT 'COUNTERPRODUCTIVE': ECONOMICS PROFESSOR

Stephen Gordon, economics professor at Universite de Laval, says the handout is not a great idea to fight inflation – in fact, it'll only make matters worse.

"It's basically counterproductive as far as attacking inflation goes, to the extent that inflation results from demand outstripping supply. Giving everybody more money to spend is only going to make the problem worse. This is generally the opposite of what we recommend that governments do during when inflation is the problem," he said.

He said the Quebec government should have taken notes from Ottawa instead.

"The Quebec government probably should have done the equivalent of what the federal government has done. Instead, instead of giving basically $500 to 90 per cent of the population, they could have done something like double the solidarity tax credit so that that households with the lowest income would benefit the most." 

With files from The Canadian Press and CTV News Montreal's Matt Gilmour