Quebec’s upcoming administration will confront a significant challenge in maintaining financial stability, as outlined by the province’s auditor general, Christine Roy. She predicts that the next government will be required to implement substantial spending reductions amounting to billions of dollars in order to achieve a balanced budget.
Roy’s report indicates a necessity for a $2 billion cut in the fiscal year 2027-2028, followed by a $3 billion cut in 2028-2029. Additionally, an expected $1.85 billion deficit for the latter year could increase the total required cuts to $4.85 billion in 2028-2029. By law, the succeeding government must eradicate the province’s deficit by 2029-30.
This forecast was presented in Roy’s pre-election report, aimed at enhancing governmental transparency regarding the economic and financial conditions of the provinces. Roy cautioned that future services might be impacted due to these financial challenges.
“The government will reduce funding for certain activities and programs, making it a challenging situation for the beneficiaries of these programs,” stated Roy during a press conference in Quebec City. The projected deficit is attributed to lower-than-expected economic growth in the province, influenced by factors like population stagnation, slowing domestic demand, and the repercussions of U.S. tariffs and global conflicts.
Quebec is set to hold its next election on October 5, with the campaign anticipated to commence towards the end of the upcoming week. In a previous statement in July, Quebec’s Finance Minister Eric Girard expressed that the province’s economy was performing better than anticipated despite global uncertainties. The operational deficit for Quebec in the last fiscal year, ending in March, revealed a $5.5 billion deficit, equivalent to 0.9% of the gross domestic product.
