Quebec finance minister says economy is doing better than expected

Minister attributes improvement to federal transfers, increase in tax revenues

Quebec Finance Minister Eric Girard says the province’s economy is faring better than expected despite global uncertainty.

He says Quebec’s deficit for the last fiscal year, which ended in March, showed an operational deficit of $5.5 billion, equivalent to 0.9 per cent of gross domestic product.

The total deficit rises to $7.8 billion when legally required payments into a debt-repayment fund are included.

The operational deficit had been projected at $11.4 billion in the 2025-26 budget and at $6.3 billion in March.

The minister attributes the improvement to what he says is prudent management of public finances as well as federal transfers, and an increase in tax revenues.

He said in a news release that spending has increased by 2.9 per cent with a focus on health care, rising drug costs, increasing subsidized daycare spaces and public transit projects.

Finance ministers give economic update as provincial deficits surge