2011–2012 Budget: Quebec Government Aiming for a Balanced Budget

Copyright 2011, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Tax, March 2011

The Quebec government's (Government) objective last year was to emerge from the economic crisis and to consolidate the province's economic recovery. The price of this recovery over the last year has been an increase in the deficit, although lower than anticipated. The deficit for the 2010–2011 fiscal year will be C$4.2-billion, C$300-million less than forecasted. The anticipated deficits for the 2011–2012 fiscal year and the following year are C$3.8-billion and C$1.5-billion. The Government has repeated that the budget will be balanced by the 2013–2014 fiscal year.

Quebec Finance Minister Raymond Bachand (Minister) has indicated in the 2011–2012 budget (Budget) tabled on March 17, 2011 in the National Assembly that the Government's objective is to reign in growth in Government spending. This will now be the Government's first priority.