A record deficit of $11 billion was “reasonable,” Judge Legault said

A record deficit of $11 billion in absolute figures is “reasonable”, judges Francois Legault.

• Also Read: The PLQ praised the rigor of the Coulard era

The day after unveiling his budget, the Prime Minister played down the extent of the deficit in the state's exchequer.

Although the $11 billion deficit is the highest in absolute figures in Quebec's history, after paying the Generations Fund, François Legault wanted to remind himself that several governments before him had provided a hole of more than 1 .5% of GDP.

A level he did not consider unequal. “I think it is a reasonable matter,” said the Prime Minister. He opined that the current situation should be taken into account in order to assess the extent of the deficit.

• Hear from Yasmin Abdelfadel news editorial QUB :

“There is an economic slowdown, there is a special situation in Hydro-Québec, we lose a billion dollars due to water levels, we are in the process of fixing two important networks (health and education). We also have to invest,” he insisted.

Continue to cut taxes

Francois Legault defended the tax cut Quebecers received after the last election.

“It has to be done because of the rise in the cost of living,” he asserted at a press scrum in the National Assembly.

In fact, the CAQ's promise to reduce the tax burden on citizens by two and a half percentage points is spread over ten years. Without reiterating his commitment, the Prime Minister praised the strategy. “I think we should see Quebecers continue to (cut) taxes in the third term.”

François Legault promised to clean up government spending and cut bureaucracy to replenish the coffers, but there was no question of sacking civil servants.

According to François Legault, the downsizing is due to the reduction of administrative staff after retirement.

Deficit increases due to lack of rains

Impacting Quebec's financial health is particularly a drop in dividends from Hydro-Québec, which may explain the rainy season. Last year's drought reduced the level of water basins used for power generation and reduced fuel exports. The consequence: the government's coffers lost $1.5 billion.

The Prime Minister expressed confidence that the state-owned company will not be unduly affected by natural calamities until it returns to a balanced budget.

“What they explained to me at Hydro-Québec is that, for a long time, there will always be a year or two when there is little water, and then it leads to a significant correction. I was told that it existed even before climate change, but that we can expect a billion in annual revenue over the next five years. I don't think so.

“Last year we made a strategic choice that we live with today, which is to cut taxes for 4.6 million Quebecers” – Prime Minister François Legault