QUEBEC: Quebec Finance Minister Eric Girard on March 18 tabled a 2026-27 budget that projects an C$8.6 billion deficit and keeps the province’s pledge to return to a balanced budget by 2029-30, setting out a slower deficit reduction path while adding targeted spending for public services, households and the economy. The deficit, measured under Quebec’s Balanced Budget Act after deposits to the Generations Fund, is equal to 1.3% of gross domestic product and follows a projected C$9.9 billion shortfall for 2025-26.
The budget also reported an accounting deficit of C$6.3 billion for 2026-27, or 0.9% of GDP, a measure Quebec says is comparable with other provinces because it excludes deposits of dedicated revenue into the Generations Fund. Revenue for 2026-27 is projected at C$166.5 billion, while total expenditure, including debt service, is forecast at C$170.8 billion. The financial framework also includes a C$2.0 billion contingency reserve for 2026-27 as part of C$8.0 billion in reserves over five years.
Quebec’s fiscal path shows deficits narrowing after 2026-27, with the budgetary balance under the act projected at C$5.7 billion in 2027-28 and C$1.5 billion in 2028-29 before reaching balance in 2029-30. The budget assumes real GDP growth of 1.1% in 2026 and 1.4% in 2027. The Finance Ministry said the main risks to that outlook stem from the trade dispute with the United States and the review of the Canada-United States-Mexico Agreement, and it published an alternative recession scenario that would see Quebec’s economy contract 0.2% in 2026.
Fiscal path and spending
The government said the budget contains nearly C$9.6 billion in additional measures over six years, aimed at strengthening public services, supporting Quebecers and helping businesses adapt to a shifting economic environment. Of that total, about C$4.3 billion is allocated to the government’s main missions, C$3.6 billion is directed to Quebecers and communities through targeted action, and C$1.7 billion is set aside to accelerate economic transformation. The budget also increases infrastructure investment by more than C$5 billion over six years.
Within the main missions envelope, the budget sets aside nearly C$2.2 billion over five years to facilitate access to health and social services, including support for medications, front-line care and efforts to reduce surgery wait lists. The plan also includes measures for education and other public services. For households and communities, Quebec said it would convert 5,000 non-subsidized childcare spaces into subsidized spaces and support the construction of more than 1,000 affordable housing units across the province.
Infrastructure and economic measures
The infrastructure increase lifts the 2026-2036 Quebec Infrastructure Plan to C$167.0 billion, with funding spread across all regions for hospitals, seniors’ homes, schools and other public assets. The budget also includes support for businesses operating in a changing trade and technology environment, with measures tied to innovation, productivity and strategic sectors. The government set aside funding for forestry businesses and communities as the sector faces pressure linked to U.S. tariffs and broader market weakness.
Girard described the package as a responsible budget that preserves the province’s course back to balance while adding measures in core services and targeted support for residents. The budget is his eighth as finance minister and keeps the government’s stated timetable of balancing the books by 2029-30. Quebec also said its net debt burden will stand at 38.8% of GDP as of March 31, 2026, and that it expects deficits to keep shrinking over the next several years as the fiscal framework takes effect. – By Content Syndication Services.