Quebec’s upcoming government is set to encounter a significant challenge in maintaining financial stability during its tenure, as per the assessment by the province’s auditor general, Christine Roy. Roy forecasts that substantial spending cuts amounting to billions of dollars will be imperative for the next government to strive for a balanced budget.
In her report, Roy outlines a requirement for a $2 billion reduction in expenditure for the fiscal year 2027-2028, followed by a further $3 billion cut in 2028-2029. Additionally, an anticipated shortfall of $1.85 billion might necessitate additional budgetary adjustments, totaling the expected cuts for 2028-2029 to $4.85 billion. The upcoming government is legally bound to eliminate the province’s deficit by 2029-30.
The projections were disclosed in Roy’s pre-election report, aiming to enhance transparency regarding the economic and financial state of the province. Roy cautioned that essential services could potentially be impacted in the foreseeable future. The anticipated deficit is largely attributed to Quebec’s below-average economic growth forecast, influenced by factors such as stagnant population growth, decreasing domestic demand, and the repercussions of U.S. tariffs and global conflicts.
“The government will reduce funding for specific activities and programs, which may pose challenges for the beneficiaries of these initiatives,” remarked Roy during a news briefing in Quebec City on Monday. Quebec’s next election is slated for October 5, with the election campaign expected to commence towards the end of the following week.
In July, Quebec’s Finance Minister Eric Girard indicated that despite global uncertainties, the province’s economy was performing better than anticipated. He revealed that for the previous fiscal year ending in March, Quebec recorded an operational deficit of $5.5 billion, equivalent to 0.9% of the gross domestic product (GDP).