Quebec’s upcoming government is set to encounter a significant challenge in maintaining fiscal balance throughout its tenure, as per the province’s auditor general. Christine Roy has estimated that the incoming administration will need to implement budget cuts exceeding $6 billion starting next year to aim for a balanced budget. This projection was outlined in Roy’s pre-election report, designed to enhance transparency concerning the economic and financial state of the province.
Roy cautioned that services could potentially be impacted in the upcoming years due to the necessary budget cuts. She emphasized during a news conference in Quebec City that the reduction in funding for certain activities and programs would pose difficulties for their beneficiaries.
The projected deficit is likely attributed to Quebec’s lower-than-usual economic growth forecast, influenced by factors such as population stagnation, sluggish domestic demand, and the repercussions of U.S. tariffs and international conflicts, according to Roy’s office. To comply with the Balanced Budget Act, which mandates the elimination of the deficit by 2029-30, the next government will need to tighten its financial belt for several years. Specifically, a $2 billion reduction is required in 2027-2028, followed by a potential $4.85 billion cut in 2028-2029.
Quebec’s next election is slated for October 5, with the election campaign expected to commence towards the end of the following week. In a previous announcement in July, Quebec Finance Minister Eric Girard indicated that the province’s economy was performing better than anticipated despite global uncertainties. He disclosed that Quebec’s deficit for the fiscal year ending in March showed an operational deficit of $5.5 billion, equivalent to 0.9% of the gross domestic product.