The Quebec government posts a budget surplus of $496 million from April to July
Quebec Minister of Finance, Eric Girard
The Quebec government reports a budget surplus of $496 million at the end of the first four months of the 2022-2023 fiscal year.
Quebec posted a deficit of $214 million in the corresponding period of the previous fiscal year.
The government attributes this result as of July 31, 2022 largely to a 10.8% increase in own-source revenue at the start of the year, driven in particular by growth in wages and salaries, household consumption and corporate profits.
According to the Monthly report of financial operations as of July 31, 2022, published on Friday, spending was up 6.7%, mainly in education and higher education.
The document notes that the more sustained growth in expenditure at the start of the fiscal year will be absorbed during the year to reach the forecast annual target of 3.4%.
This result stems from revenue of $46.2 billion, expenditures of $44.6 billion and deposits of $1.1 billion in the Generations Fund.
The Minister's office of Finance, Eric Girard – who was reappointed this week – recalls that economic activity in Quebec has shown signs of slowing down in recent months.
All the same, the financial results currently remain in line with forecasts, it is said.
“The economic risks facing Quebec, including persistent inflation, rising interest rates, disruptions in supply chains and the war in Ukraine, could, however, affect public finances during the year. »
— Eric Girard, Minister of Finance
It is therefore important to remain prudent in managing the financial framework, he adds.
This is also what the Auditor General, Guylaine Leclerc, concluded in August following the unveiling of the document provided by Minister Girard on the anticipated state of public finances for the period from 2022-2023 to 2024-2025, as the election campaign approaches.
Ms. Leclerc indicated that the Minister's budget forecasts were plausible, while adding that the possibilities of #x27;impact of the climate of economic uncertainty on the health of Quebec's public finances remained unusually high.
According to the data presented in the Pre-election report on the x27;State of Québec's Public Finances — August 2022, a budget deficit of $1.7 billion is forecast for the entire fiscal year, before use of the stabilization reserve.
This deficit includes a $2 billion provision for economic and other risks support and recovery measures.