Duhaime would significantly slow the rise in government spending and revenue | Elections Quebec 2022

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Duhaime would significantly slow the rise in government spending and revenue | &Elections Québec 2022

The PCQ's financial framework notably provides for tax reductions of $29 billion over five years.

Éric Duhaime's Conservative Party of Quebec presented its financial framework on Wednesday.

The Conservative Party of Quebec (PCQ) proposes to give a vigorous boost to the government's finances by cutting more than 32 billion dollars (B$) in spending and foregoing $24 billion in revenue over five years.

Its financial framework unveiled on Wednesday in the presence of party leader Éric Duhaime and his predecessor Adrien Pouliot, who is now acting as an advisor, notably provides for significant tax cuts totaling $29 billion from 2022-2023 to 2026-2027 and a drastic reduction in business assistance of $13 billion.

Under a Conservative government, revenues and expenditures would continue to grow due in particular to the normal economy growth and system cost increase. However, the measures proposed by the party would slow down these increases.

Éric Duhaime was accompanied on Wednesday morning by adviser Adrien Pouliot, who led the PCQ from 2013 to 2021.

Unlike the Coalition avenir Québec (CAQ), the Parti québécois (PQ) and especially Québec solidaire (QS), the PCQ would not touch the Generations Fund, which is also proposed by the Liberal Party of Quebec (PLQ ).

But, unlike Dominique Anglade's team, Éric Duhaime's plans to return to surpluses in two years, not seven. At first timid ($934 million in 2024-2025), the budget surplus promised by the PCQ would exceed $6 billion in 2026-2027.

This performance would even allow the Quebec government to bring the ratio between gross debt and GDP below the 35% mark, taking it from 42.1% to 34.3%, a more ambitious objective than those set by the other parties.

The PCQ's financial framework also provides for not affecting expenditures related to COVID-19 support and recovery measures ($2.8 billion from 2022-2023 to 2024-2025) or the provision for economic risks of $2 billion per year ($10 billion over five years) provided for in the pre-election report of the Ministère des Finances.

In fact, Éric Duhaime's party is the only one, with QS, to promise to fully respect this provision, which does not appear in the financial frameworks of the PLQ and the PQ. The CAQ, for its part, has planned to reduce it by $1 billion per year in 2025-2026 and 2026-2027.

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Gigantic, the personal income tax cut proposed by the PCQ would go through an increase in the basic personal exemption, which would climb from $15,728 to $20,000, and a two percentage point reduction from the first two tiers.

Among other quantified measures included in its financial framework, note that the party expects to lose $792 million for the current year by suspending for five months the fuel tax of 19.2 cents per litre.

It also predicts a shortfall of $5.6 billion over five years resulting from a possible increase in the tax credit for career extension of experienced workers, i.e. people aged 60 and over.

In addition, the elimination of the QST on used goods and on equipment and physical activities would cause the public treasury to lose $1.86 billion, while the tax credit for sports subscriptions would cost $240 million. $, calculate the party.

In return, the PCQ wants, among other things, to gradually reduce tax assistance to businesses until they disappear completely, towards the end of the next mandate. He argues that it's not for the government to choose the winners and losers in the game of competition.

“If a project is not good, it does not deserve grants. And if a project is good, it doesn't need subsidies. »

—Adrien Pouliot, former leader of the PCQ and adviser to Éric Duhaime

The party would also impose a government spending cap law in order to save $8.9 billion by the end of the next mandate and would launch a major deregulation project to save $7.9 billion. $ over the same period.

The addition of private healthcare, which would imply, among other things, that the management of certain hospitals be entrusted to companies, would also allow the #x27;state to cut spending by $4.5B from 2024-2025 to 2026-2027, according to PCQ estimates.

His proposal to phase out subsidies for electric vehicles would allow the government to keep $2 billion in its coffers over five years.

The PCQ is the last of the five parties represented in the National Assembly to make public its financial framework after the PLQ (September 4), QS (last Friday), the CAQ (Saturday) and the PQ (Tuesday).

This document – which has no less than fifty pages – was presented Wednesday morning in a hotel in Laval, a few hours before the presentation of the traditional debate of Economy Zone, which will air at 5:55 p.m. Eastern Time on ICI RDI.

TVA's Face-à-Face, which will coincide with mid-campaign, will take place on Thursday. For this reason, François Legault (CAQ), Dominique Anglade (PLQ), Gabriel Nadeau-Dubois (QS) and Paul St-Pierre Plamondon (PQ) have not scheduled any public appearances on Wednesday.

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