Quebec Parties Propose Measures to Balance Budget by 2029-30 Deadline

Quebec's next government must balance the budget by 2029-30 as per law, and major parties are proposing measures to achieve this goal. A balanced budget means a government's total expected revenues equal its planned expenses, including contributions to the Generation's Fund, which reduces public debt. Quebec's deficit for the last fiscal year was $7.2 billion.

Julian Karaguesian, an economist at McGill University, notes that neither the province's deficit nor outstanding debt are large, but sustained deficits can lead to a downgraded credit rating, increasing interest rates on loans. He cites Greece's 2010 financial crisis as an extreme example of this, where severe austerity measures were implemented in exchange for IMF and European Central Bank loans.

Karaguesian warns that Quebec is facing challenging economic times due to the tariff war with the U.S. and its aging population. He says the province should focus on developing new sources of revenue rather than weakening public services.