Quebec: Economic and Fiscal Update

Quebec’s new government has been in power for just a few weeks and, as expected, has inherited an enviable financial situation. The projected balance before the deposit into the Generations Fund is now $4.501B for the current fiscal year (2018–2019). This is a substantial increase from the $904M forecast in the last budget. While program expenditure growth is in line with projections at around 4.9%, the change in budgetary revenues has far exceeded expectations with an increase that has now been revised to 3.8% (from 2.2% in the last budget).