$635 million less than expected in Quebec’s coffers

Quebec added $635 million to its deficit forecast for 2023-24, bad news the government blames on economic and weather gloom.

The Ministry of Finance indicated, in a report published late Friday afternoon, that Quebec’s GDP growth during the first half of the fiscal year amounted to only 0.5%.

“The economic slowdown has consequences on government revenues, especially on corporate taxes, which has negative effects on Quebec’s budget situation,” lamented Finance Minister Eric Girard.

As a bonus, a lack of rain to fill Hydro-Quebec’s tanks has limited the state-owned company’s exports, reducing its revenues and, ultimately, the money it will pay to the government.

For these reasons, the projected deficit has increased by $635 million since the fall economic update.

The government decided to pump the $500 million it had allocated to cover unexpected events in order to reduce this increase in the deficit.

Quebec now plans to end its 2023-2024 fiscal year with a deficit of $4.1 billion, an amount that includes payments to the Generations Fund.

“The current economic situation remains difficult, as predicted in the November 7 update,” Mr. Girard emphasized.