Quebec’s deficit $3.2 billion below last budget forecasts
Posted June 27, 2025 6:47 pm.
The deficit is smaller than expected in Quebec for the 2024-2025 fiscal year, according to the province’s Financial Situation Report published Friday.
According to preliminary results as of June 18, the deficit stands at $4.9 billion, well below the $8.1 billion forecast established last March.
These results were made possible, among other things, by a decrease in spending compared to forecasts. While the government expected to increase spending by 7.7 per cent, the actual figure was closer to 6.2 per cent. This represents $2.3 billion in savings compared to forecasts.
“This positive revision is achieved thanks to the actions taken over the past year to ensure more efficient and targeted management of expenditures in order to respect the allocated budgets,” the Ministry of Finance explained in a press release.
The Quebec economy is also performing better than expected in the face of uncertainty created by the United States’ tariff policy, which is increasing government revenue. The increase is mainly felt in “tax revenues from personal and corporate income taxes, as well as consumption taxes,” the ministry notes.
Government companies, mainly Hydro-Québec, also made more profits than expected thanks to favorable economic conditions.
Finance Minister Eric Girard noted an increase in revenue of nearly $1 billion. In light of this positive revision, he noted that his government’s objective “remains to return to a balanced budget by 2029-2030, and we are continuing the plan initiated in the 2024-2025 budget to achieve this.”
–This report by La Presse Canadienne was translated by CityNews
