The 2024-2025 budget reveals an $11 billion deficit attributed to sluggish economic activity and increased spending on public sector settlements. In response, the government is reaffirming its priorities and devoting the bulk of its spending to health and education.
For the Coalition Avenir Québec, this budget marks a challenging moment. Opposition parties criticize past election-oriented budgets, tax cuts for individuals and one-off cheques sent to Quebecers to help them fight inflation. Despite this criticism, the government is sticking to its game plan, eschewing talk of austerity and committing to returning to balanced budgets in the future while enhancing public services.
To achieve its goals, the government plans to launch a “comprehensive review” of government and tax spending in the upcoming spring.
The 2024-2025 budget was an opportunity for Premier François Legault to reaffirm his priorities in a difficult context. The effectiveness of the announced measures and the hope of an economic upturn by the year’s end will determine whether public finances can find a more stable footing.
You can find our analysis of the budget below. For more analysis, or support engaging government on any of the budget announcements, contact your Navigator team or reach out at info@navltd.com.
