What is Quebec going to spend its budget on?
The province's new financial report demonstrates the priorities of the authority.
Quebec Finance Minister Eric Girard has unveiled the province's financial report, which envisions about CA$ 4.3 billion for various social benefits and programs. The planning in this report assumes a five-year timeframe. So, what major spending is envisioned.
Indexation of tax deductions
On January 1, 2024, tax credits, tax deductions, and social assistance are indexed at 5.08%. This percentage is higher than the projected inflation rate for the same period. This will total CA$ 2 billion, and on an individualized basis will cost each taxpayer approximately CA$ 282 for 2024.
Housing
To make housing more affordable, the government plans to invest CA$ 1.8 billion over the next five years to build 8,000 new units of social and affordable housing for low-income families.
Of these, 7,500 units are being planned under the Quebec Affordable Housing Program and in partnership with tax credit funds. So the federal Housing Accelerator Fund project is adding CA$ 900 million of its own. The remaining 500 apartments are for the homeless.
The problem of homelessness
CA$ 145 million will be allocated to help them, of which 21 are being donated to organizations that provide food to the homeless. In October, Quebec food banks experienced an unprecedented increase in the number of people seeking assistance — 30% more than a year ago.
The majority of the funds, CA$ 124 million, however, are intended to combat the phenomenon itself, to prevent homelessness and promote social reintegration of people in difficult circumstances.
Training in construction, health and social services
To cope with the labor shortage, the government is investing an additional CA$ 329 million over the next two years on training in priority areas: construction, medicine and social services. As a reminder, there are hundreds of thousands of public sector workers on strike in the province right now.
Girard's office noted that unlike last year's report, the current investment does not include direct payments to Quebec residents to offset the effects of inflation. In 2022, the government twice issued one-time payments to adults earning CA$ 100,000 or less.
Combating climate change
This weekend Canada switches to winter time
A new era for Canadian athletes
Canada celebrates its National Day and reflec...
Rising inflation in May threatens rate cuts i...
Canada Prepares for a Sharp Increase in the E...
High Auto Insurance Rates for Immigrants Spar...
Canadian intelligence raises alarm: China's i...
Canada continues to attract skilled professio...
How the food supply chain in Canada works and...
The mysterious disappearance of a taxidermy g...
The remains of a mysterious ship have been fo...
Saskatchewan raises age limit for tobacco pur...
CA$ 961 million is allocated for climate change initiatives. This includes helping communities, restoring forests destroyed by fires this summer, and funding public transportation.
Business
As measures to encourage business investment and simplify the tax system, the government is announcing an increase in the Investment and innovation tax credit. Quebec will allocate CA$ 1.3 billion for this over the next 5 years.
"Our responsible management of public finances allows us to take targeted action to meet the priorities of Quebecers and increase Québec's economic potential, while maintaining our objectives of returning to a balanced budget and reducing the debt burden."
Despite the global economic downturn, from which Quebec is not immune, the government maintains its goals of returning to a balanced budget in 2027-2028 and reducing the net debt burden to 30% of GDP by 2037-2038.
