Quebec Finance Minister Éric Girard presented the CAQ’s seventh budget in a time of turbulence and economic uncertainty caused by diplomatic tensions and trade relations with the U.S. administration. The budget aims to help Quebec weather these difficult times while maintaining sound public finances.
The budget introduces measures to support businesses affected by U.S. tariffs, increase innovation, diversify markets, and invest in major infrastructure projects. It is also an opportunity for the province to foster growth through the reduction of administrative processes and regulatory red tape. Quebec will also continue to invest in improving the healthcare and education systems.
With the budget presented only a week before the American-imposed tariffs are set to come into effect on April 2, the Quebec government remains optimistic that trade discussions over the next months will yield less negative outcomes. The budget was forecasted on this hypothesis. Nevertheless, the situation of uncertainty is expected to have a lasting impact on the Quebec economy.
Investments to stimulate the economy will be coupled with a cut back on overall spending and changes to fiscal measures with the goal to achieve a balanced budget by 2029-2030. Quebecers can expect to see some tax incentives removed, a hike in prices, and changes to certain previously subsidized services.
Minister Girard is framing the budget as difficult decisions to strengthen the province in a time of uncertainty likened to the beginning of the pandemic in 2020.
You can find our full 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.
