Inflation continues to influence budgetary choices

While Quebec’s budget projections improved versus Budget 2022, they deteriorated somewhat compared with its pre-election report. A large starting point boost for revenues drove much of the fiscal improvement, with some of those gains expected to be eroded by new policy designed to offer relief from inflation. Overall, the update shows that public finances are in good shape, at least when looking in the rear-view mirror; that is good news because we’re not only seeing clouds darken on the horizon: the first raindrops are also starting to fall.