Quebec Finance Minister Eric Girard has presented a restrained budget ahead of the upcoming October election, focusing on navigating trade challenges and geopolitical tensions. The budget, the eighth under the Coalition Avenir Québec (CAQ) government, does not include major initiatives typically seen in pre-election budgets.
The projected deficit for this year stands at $9.9 billion, down from an earlier estimate of $12.4 billion. Looking ahead to the 2026-27 fiscal year, the budget forecasts a deficit of $8.6 billion within the $170.8 billion budget.
Girard highlighted Quebec’s strong economic fundamentals compared to the rest of Canada, attributing the province’s financial stability to conservative spending measures. However, uncertainties such as fluctuating U.S. tariff rates and recent oil price hikes could impact the budget’s outlook.
The budget allocates funds for addressing social challenges like homelessness and intimate partner violence, as well as supporting small and medium-sized businesses. Infrastructure investments are set to increase by over $2 billion in key sectors like healthcare, education, public transit, and roads.
Despite optimism for Quebec’s economic growth, challenges like the Canada-United States-Mexico Agreement’s renewal pose risks. Girard presented economic scenarios, including a potential recession if trade disputes escalate with the U.S.
Furthermore, the budget earmarks $250 million annually over five years for the future CAQ leader to fulfill electoral promises. Opposition parties have criticized the budget, with concerns raised about fiscal prudence and the budget’s alignment with public priorities.
The budget’s aim to maintain fiscal stability amidst external pressures reflects Girard’s strategic approach to managing Quebec’s financial landscape ahead of the election.