http://www.lapresse.ca/actualites/politique/politique-quebecoise/201803/14/01-5157262-couillard-somme-lopposition-de-ne-pas-piger-dans-le-fonds-des-generations.phphttp://www.lapresse.ca/actualites/politique/politique-quebecoise/201803/13/01-5157200-10-milliards-pour-la-dette-du-quebec.phphttps://in.reuters.com/article/canada-quebec-debt/quebec-govt-says-to-cut-debt-by-c10-billion-as-election-looms-idINL1N1QW0QChttp://montrealgazette.com/news/quebec/quebec-budget-to-be-tabled-march-27-but-dont-expect-personal-tax-cuthttps://www.nasdaq.com/article/quebec-govt-says-to-cut-debt-by-c10-billion-as-election-looms-20180314-00731http://www.budget.finances.gouv.qc.ca/fondsdesgenerations/
The government of Philippe Couillard, Premier of Québec, has announced the budget they will table in the National Assembly of Québec. This budget, the last before the fall general election, includes the intention to draw $10 billion (CAD) from the Generations Fund to pay down debt more quickly over the next five years among other campaign-oriented promises.
Finance Minister Carlos Leitão and Premier Couillard made the announcement Wednesday morning in an impromptu press event at the Hôtel du Parlement in Québec City. The budget is the fifth under Minister Leitão, and his fourth consecutive balanced budget.
Le Fonds des générations (Generations Fund) was announced in 2006 as an annual set-aside, outside the province’s general fund, creating a trust fund specifically for paying down provincial debt with the intention to reduce province’s debt-to-GDP ratio to 45% by 2026. At the time the ratio was 53.8%, and it is currently 51.9% and is on track to achieve its goal. The governing Liberals propose to draw from the principal of the fund to pay debt, which the Finance Minister says could save as much as $1 billion. La Presse notes a recent examination by tax specialists of exactly that plan advised against touching the principal unless the province were facing recession.
Although a campaign-oriented budget, taxpayers cannot expect additional tax cuts from it. Minister Leitão told the Montreal Gazette recently that “In terms of personal taxation, we have done what we had to do back in November. So in the upcoming budget we don’t intend to go very far in that (direction).” Instead there is infrastructure spending as well as considerable funding for workforce development and education.
The current budget’s new spending initiatives are covered by the current surplus – reported to be as high as $2.9 billion CAD – which may help the ruling Liberal party, which has been experiencing reduced popularity in polls leading up to the election period.