(Quebec) The Quebec government posted a budget surplus of $1.4 billion for the first five months of this fiscal year, attributing this result to significant revenue attesting to the strength of the economic recovery observed since the beginning of the year.
In the monthly report on financial transactions as of August 31, 2021, which was published on Friday, the government emphasized, however, that some factors will have a downward impact on the budget balance by the end of the year.
First and foremost, a large part of the annual spending planned for the second half of the year will be allocated, mainly to health and education.
Thus, there is still a total of 6.4 billion additional expenditures to be recorded.
While economic activity in Quebec remains “dynamic”, the government estimates that it will develop at a slower pace than at the beginning of the year, which will have an impact on moderate income growth by the end of the year.
Thus, throughout the entire 2021-2022 fiscal year, the government expects a budget deficit of 6.8 billion before the stabilization reserve is used, as announced in the economic update of the Minister of Finance, Eric Girard, last November.
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