Quebec revises budget deficit increase again for last fiscal year

Quebec revises budget deficit increase again for last fiscal year 

Source: Quebec revises budget deficit increase again for last fiscal year | Montreal Gazette

The province had a deficit of $8 billion during the fiscal year that ended March 31, 2024, including $2 billion invested in a fund used to pay down Quebec's long-term debt.

The Quebec government says the province’s budget deficit in the last fiscal year was $570 million higher than its revision in June, when it increased the estimated deficit by more than $1 billion over an earlier projection.

The province had a deficit of $8 billion during the fiscal year that ended March 31, 2024, including $2 billion invested in a fund used to pay down Quebec’s long-term debt.

That’s up from an estimated deficit revision of around $7.5 billion presented in June — an increase of $1.2 billion from a $6.3-billion deficit presented in March, which was up from an earlier estimate of $4 billion.

The government blamed the higher-than-expected deficit on a $219-million judgment in a class-action lawsuit brought by taxi drivers who saw the value of their taxi permits plummet after the arrival of Uber in the province, increased pay for certain government employees and updated financial information from Crown corporations and other entities.

Finance Minister Eric Girard said in a news release that the new figures are a sign of the economic uncertainty during the 2023-2024 fiscal year, but that the province still plans to return to a balanced budget no later than 2029-2030.

Quebec’s deficit forecast for 2024-2025 remains unchanged at $11 billion, with spending and government revenue rising in equal measure.

Girard, who is scheduled to provide an economic update in November, says modest economic growth has resumed in the province.