Quebec fiscal update: $2.1B in new spending, axes tax credit for older workers
Quebec Finance Minister Eric Girard tabled an economic update on Thursday with $2.1 billion in new spending over five years amid what he described as a stronger-than-expected recovery from last year's economic slowdown.
Girard painted a positive picture of the province's finances despite a projected $11-billion deficit that remains unchanged from March's budget.
"Quebec is progressing," he told reporters. "The return of inflation to a low and predictable level, combined with the reduction in interest rates, favours economic recovery in Quebec in 2024 and 2025."
He said real GDP growth is expected to be 1.2 per cent in 2024, compared with the 0.6 per cent that was expected. However, spending is also up, with Girard pointing to expenses related to record-breaking flooding this summer and increased health and social services costs.
The new spending he announced includes more than $250 million for the forestry sector and $1.2 billion for community development, including $880 million for public transit.
The government is also setting aside $250 million to assist flood victims and rebuild infrastructure following post-Tropical Storm Debby, and $208 million to promote access to housing.
Girard told reporters the government is still reviewing its spending as it moves toward its goal of balancing the budget by the 2029-30 fiscal year, with more details to be provided in next year's budget.
As part of the review, the government decided that Quebecers between the ages of 60 and 64 will no longer be eligible for a tax credit that was introduced in 2012 to encourage older workers to stay in the workforce. Girard said Thursday the average age of retirement in Quebec has risen to 64.7 years in 2023 from just over 61 years in 2011.
"For people between the ages of 60 and 64 years old, the historic gap that existed with Ontario has practically disappeared," he said. Nearly 200,000 60- to 64-year-olds are expected to lose out on an average of about $1,000 per year due to the changing eligibility.
The government is also clawing back the amount of the credit for higher earners who are 65 and over, beginning at $56,500 in net revenue. Those who make over $81,500 will get no tax credit.
These changes are expected to save the government about $200 million per year, said Girard, adding that "people expect us to review measures and eliminate those that are no longer justified."
This report by The Canadian Press was first published Nov. 21, 2024.
— With files from Morgan Lowrie in Montreal
CTVNews.ca Top Stories
'Shameful': Monument honouring fallen soldiers included names of living veterans
Veterans are asking for answers after discovering that two sculptures in Ontario honouring fallen soldiers include the names of many people who are very much alive.
Canada's air force took video of object shot down over Yukon, updated image released
The Canadian military has released more details and an updated image of the unidentified object shot down over Canada's Yukon territory in February 2023.
Invasive species could be hiding in your Christmas decor. Here's how to stop the spread
Make sure to look through your holiday decorations, as Christmas trees, wreaths, and other natural decor can have invasive insects, eggs, and plants that pose a threat to local ecosystems and the economy.
The mysterious, mathematical origins of the world's most unusually shaped national flag
It's a go-to question at bar trivia: what is the only national flag in the world that isn't rectangular or square shaped?
Days after gunman killed UnitedHealthcare's CEO, police push to ID him and FBI offers reward
The gunman who killed the CEO of the largest U.S. health insurer likely left New York City on a bus soon after the brazen ambush that has shaken corporate America, police officials said. But he left something behind: a backpack that was discovered in Central Park.
Notre Dame reopens its doors to Macron and other world leaders in a rare symbol of unity
France's iconic Notre Dame Cathedral is formally reopening its doors on Saturday for the first time since a devastating fire nearly destroyed the 861-year-old landmark in 2019.
Not just for your parents: Facebook's buy-and-sell platform drawing back millennials
The two-metre-tall anchor, believed to be from a century-old shipwreck, was salvaged by a fisherman in the 1980s. But last year, the 31-year-old Stapleton, who works as a navigation officer on a cargo ship, snapped it up on Facebook Marketplace.
Northern Ontario man sentenced for killing his dog
WARNING: This article contains graphic details of animal abuse which may be upsetting to some readers. A 40-year-old northern Ontario man is avoiding prison after pleading guilty to killing his dog earlier this year.
'If it ain't broke don't fix it': U.S. ambassador warns Canada against cutting Mexico out of trilateral trade deal
Cutting Mexico out of the current North American free trade deal 'may not be the best path to take,' says U.S. Ambassador to Canada David Cohen.