This analysis looks at the spending and revenue measures announced in the Quebec Budget 2017 and evaluates the Quebec government’s ability to meet any risks and challenges that could arise in the coming months and years.
Quebec Budget 2017
Quebec Budget 2017
Provincial Economic Analysis
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- The economic recovery has strengthened, but uncertainty about the direction of U.S. trade under the Trump administration and the ongoing weakness in private investment in machinery and equipment are downside risks.
- The Quebec Budget 2017 forecasts surpluses over the next few years, rising to nearly $4 billion in 2021–22. Surpluses will go into the Generations Fund.
- The government announced last fall that it would move the planned abolition of the health contribution tax up to 2017. But it has gone further in this budget by also reimbursing the contribution paid in 2016 by taxpayers earning less than $134,000 per year.
- Own-source revenues have grown enough to allow growth in program spending to return to the levels needed to ensure program sustainability.
- Quebec’s debt-to-GDP ratio continues to improve. But given the uncertainties about future U.S. policy, caution is required.
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