Quebec coffers were $635 million less than expected

Quebec has added $635 million to its deficit forecast for 2023-2024, amid bad news the government blames on economic gloom and the weather.

Quebec’s GDP growth was just 0.5% in the first half of the fiscal year, the Finance Ministry indicated in a report published Friday afternoon.

“The economic slowdown has consequences for government revenues, particularly corporate taxes, which have negative implications for Quebec’s budgetary situation,” lamented Finance Minister Eric Girard.

As a bonus, the state-owned company’s exports have been limited by a lack of rain to fill Hydro-Québec reservoirs, reducing its revenues and ultimately the money it owes the government.

For these reasons, the projected deficit shortfall from the fall fiscal update increased by $635 million.

To reduce this increase in the deficit the government decided to inject $ 500 million earmarked to cover unforeseen events.

Quebec now plans to end its 2023-2024 fiscal year with a deficit of $4.1 billion, which includes payments to the Generations Fund.

“The current economic situation is difficult, as anticipated in the November 7 update,” Mr. Girard stressed.