The government’s $ 6.8 billion “small budget” deficit is lower than expected at $ 12.3 billion this fiscal year.
QUEBECK – Finance Minister Eric Girard will release his fall economic report on Thursday to reduce his loss forecast, provide new money for parents with children in private subsidies, and provide $ 200 to $ 400 in living allowances to poor Quebec. January 1, 2022.
Quebec is also increasing its tax credit for low-income seniors by $ 200 per person to a maximum of $ 400 starting this year. Almost 709,000 seniors will benefit.
Despite the long-lasting effects of the COVID-19 epidemic, Girard plans to return to a balanced budget by 2027-2028, so the budget is better than expected. Instead of a $ 12.3 billion deficit this fiscal year, the figure is being updated to $ 6.8 billion.
After paying for all the so-called structural losses, the remaining $ 4 billion will be less than Girard’s forecast of $ 6.5 billion in March.
As Quebec approaches the 2022 election year, all this good news is coming to the door.
However, at a press conference to present his preliminary report, Girard said that the election was not on his mind when he drafted the eighth budget package since taking office in 2018.
“I think I’m honest,” Girard said. “You asked a question. I’ll give you the answer. I didn’t pay attention to the election, believe me. These (people) are the result of helping.”
The conditional battery allowed Girard to open the drain valve after nearly two years of costly management of the plague. In Girard’s March 2021 budget, Quebec updated almost all of its worst-case scenarios.
The economy is booming and returning to pre-epidemic levels. That means more jobs and growth, which is $ 9 billion more than expected. Federal transfers also increased by $ 2.6 billion. This is due to recent agreements, including a $ 6 billion daycare agreement and Ottawa’s assistance in the fight against the plague.
Girard has revised its economic growth forecast. Instead of growing 4.3 percent in 2021, the new forecast is 6.5 percent, higher than in Canada (five percent) and the United States (six percent).
Girard’s unemployment rate is projected to fall from 6.8 percent in December 2020 to 5.7 percent in December 2021.
The government’s economic reforms, known as small budgets, have resulted in other measures to spend on branded goods.
There is $ 804 million in cash to cover the cost of surgery due to the plague, as well as low-cost housing and cash bonuses for health workers.
Following a series of shootings in Montreal last week, the government has set aside $ 65 million in new funds to implement Quebec’s strategy to combat gun violence. The state of Quebec has already spent $ 84 million on Operation Centaur, which has strengthened local police forces.
Quebec has added $ 21 million to combat discrimination and racial discrimination, and $ 232 million to prevent domestic violence and support victims.
Girard has announced that he will spend $ 2.9 billion in various sectors to train and retrain 170,000 workers over five years, with the goal of tackling Quebec’s chronic labor shortage.
In particular, $ 1.7 billion will be invested in a new incentive scholarship program for targeted students. Students can receive a $ 9,000 scholarship at the college level, $ 15,000 at the three-year program at the university level, and $ 20,000 at the four-year program.
The list includes six majors: health, social services, education, education, childcare, engineering, information technology, and construction.
On the other side of the age range, Quebec is offering more tax breaks for workers over the age of 60 who want to extend their careers.
Parents who send their children to private care without subsidies enjoy a $ 1.1 billion rebate.
Officials say the goal is to gradually level the private and public care system, where parents pay $ 8.50 a day. Parents can spend $ 40 a day on a private network.
The new system will save families between $ 60,000 and $ 100,000 up to $ 1,310.
Quebec is adding $ 1.1 billion to its social solidarity budget to help low-income families pay for food and rent. Low-income couples can get a one-time payment of $ 400, while single people can get $ 275.
A total of 3.3 million low- and middle-income Quebecers will benefit from a one-time payment, which will come down after Christmas.
The reform is also part of a political initiative by Prime Minister Francois Legault to close the cost gap between Quebec and Ontario. According to the document, Quebec is given 15 years to close the gap, which is now 12.9 percent.
Quebec’s opposition parties did not make much of an impact on the exercise.
Liberals say the reform does not offer a realistic solution to how to fill the 280,000 vacancies in Quebec, and Legault made no mention of tackling climate change, despite a recent visit to the COP-26 summit.
“The government is opening the tap at the beginning of the election year, but we plan to close it after the election in 2023,” added Ruba Ghazal, a financial critic in Quebec.