Quebec: Budget 2023 - Tax Cuts Come with a Price Tag

Despite an improvement in its deficit for 2022–2023, Quebec is now expecting to run a larger-than-previously forecast deficit of $4B (0.7% of nominal GDP) in 2023–2024, and $2.3B (0.4%) in 2023–2024 after deposits in the Generations Fund. The government’s economic growth forecasts remain more optimistic than Desjardins’s. Overall, the budget delivers on the government’s commitments made during last year’s election campaign. Tax cuts will give many households a definite financial boost. However, everything has a cost. In this case, the budget includes cuts to deposits in the Generations Fund, which has proven to be a valuable debt management tool over the years.