The Quebec government will present its fall economic update today.
The update, sometimes called a mini-budget, provides a glimpse into the province’s financial picture. In years past, it has also been an opportunity for the government to announce some new spending.
But this year, since Quebec has projected an $11 billion deficit in 2024-25, it is less likely that the government will be announcing spending. Rather, cuts are widely expected.
Finance Minister Éric Girard is expected to announce a bleaker picture of the province’s finances than he did last spring.
Hydro-Québec announced financial results this week that show the Crown corporation’s profits are down more than $800 million this year due in large part to a lack of water in its reservoirs.
Girard had already asked Crown corporations — including Hydro-Québec, but also Loto-Québec, the Société des alcools du Québec, the Société québécoise du cannabis and Investissement Québec — to find an extra $1 billion in net revenue over five years.
The government also recently asked Santé Québec, the newly created administrative body in charge of the health-care network, to find $1 billion in savings. It is unclear how those cuts might affect Quebecers. The government has asked the network to attempt to cut administrative costs without touching health-care services.
The economic update will be officially unveiled at 11 a.m. on Thursday.
Last year, the government used the economic update to distribute some of its contingency fund — an amount of money set aside in the province’s annual budget — to fight food insecurity and build social and affordable housing.
During its six years in power, the Coalition Avenir Québec (CAQ) has lowered some taxes while increasing government spending, but Girard has blamed the pandemic and other “difficult economic conditions” for slowing Quebec’s economy in recent years.
Girard had also said he expected the economy to improve by 2025, which would allow the government to begin to reduce its deficits.
He has gradually postponed his plan to return to a balanced budget and now says the government intends to do so by 2029-30.