Deficit: Quebec is preparing to break new budget record, exceeding $11B

With the economic uncertainty caused by Donald Trump’s tariffs, Quebec’s deficit for the 2025-2026 fiscal year will break a new record, exceeding $11 billion, Finance Minister Eric Girard confirmed Monday. 

“It’s because we need to focus on the economy. We’re taking steps to support the economy. And we also need more substantial provisions because we’re in a period of great uncertainty,” the minister explained at a press conference on Monday, where he discussed the broad outlines of his budget.

The budget will be officially tabled on Tuesday. 

“This is a complex budget. In an extremely difficult environment. We have chosen to focus on the economy while protecting public services,” said Girard. 

Despite everything, the minister assured that the situation was “under control.”

The minister will also present his plan to return to a balanced budget on Tuesday.  

Girard also said that the 2024-2025 deficit – projected at $11 billion – will ultimately be smaller.

The minister will present his plan to return to a balanced budget over five years, despite the economic uncertainty.

Girard also assured that his budget would include reinvestments in services.

“What’s important is that revenues grow faster than spending and that we converge toward a balanced budget,” he explained.

Recession?

The economic turmoil is not about to subside, especially since Trump is threatening to impose more tariffs on April 2.

Girard nevertheless believes that Quebec can still avoid a recession.

“The threat is significant, but there will be discussions and negotiations. And just because there are tariffs on April 2 doesn’t mean they will remain in place for a long time,” he said.

Girard took advantage of his press briefing to announce $15 million over three years for business research and innovation.

“Innovation will be a central theme of the budget,” he stated.

“Like a kid in a candy store”

“François Legault manages Quebecers’ money like a kid in a candy store: without restraint and without the slightest rigor. During all his years in power, he has squandered hard-earned taxes. Our economy has regressed under the CAQ. Our SMEs are suffering more than ever from the lack of a true ‘Quebec First’ vision,” stated interim Liberal leader Marc Tanguay.

“I urge François Legault and his minister, Eric Girard, not to worsen the economic situation of workers by cutting our public services.” (…) I also urge them to ensure that in a family where someone loses their job because of Trump’s tariffs, the other person in the couple doesn’t lose their job because of François Legault’s cuts to public services,” said Québec solidaire spokesperson and newly appointed parliamentary leader, Ruba Ghazal.

“I expected us not to surpass the historic deficit of last time, because it’s dangerous in terms of Quebec’s credit rating and financial health. Now, we have to study it. But obviously, what we’re going to monitor is where we’re cutting to reach this deficit, given the waste at SAAQclic, and in several decisions involving hundreds of millions in businesses?” said PQ leader Paul St-Pierre Plamondon.

–This report by La Presse Canadienne was translated by CityNews