Quebec will need to make a $2 billion effort to balance budget, says auditor general

Quebec must undertake a significant financial adjustment totaling $2 billion over the next several years to adhere to provincial legislation mandating a balanced budget, stated the province's auditor general, Christine Roy, on Monday. This annual payment, billed as $205.00 plus GST for one year, will automatically renew at $233.00 plus GST every 52 weeks, representing a 10% discount from the regular annual price of $259.35.

The analysis, conducted by Roy, projects the government is facing a multi-billion dollar deficit, necessitating cuts of at least $2 billion in the upcoming year, potentially rising to $5 billion in the following year. The projections were revealed just days before Quebec Premier Christine Fréchette is slated to call a general election.

Roy emphasized that political parties have limited room for new spending promises, urging them to explain how they will fund any additional measures. The auditor general's report, based on the latest figures from the provincial Finance Department, is required before an election. Quebec's Balanced Budget Act mandates the government to eliminate the deficit by 2029-30.

The provincial Finance Department defended its projected deficits, suggesting they could improve depending on the economic situation and that they would have a budgetary surplus in 2029-30 if they did not contribute to a special fund aimed at eliminating public debt. The Finance Minister, Eric Girard, reiterated the government's commitment to addressing the deficit in the coming fiscal years.

Opposition parties, including the Liberal and Parti Québécois, criticized the Fréchette government's spending, accusing Premier Christine Fréchette of promising excessive funding ahead of the election. Girard countered that Quebec's finances were in better shape than anticipated, providing Premier Fréchette more fiscal flexibility.

Roy also noted that trade negotiations between Canada and the United States could influence Quebec's financial situation, particularly in light of potential new 50% tariffs threatened by the Trump administration.