With the upcoming election in October 2026, Quebec’s Finance Minister, Eric Girard, has introduced a budget that focuses on fiscal responsibility and addressing pressing social issues. His latest budget, marking his eighth since taking office with the Coalition Avenir Québec (CAQ), steers clear of extravagant proposals typically expected in pre-election periods.
Quebec’s Deficit and Economic Outlook
The projected deficit for the 2025-26 fiscal year is $9.9 billion, significantly lower than the previously anticipated $12.4 billion. The budget for 2026-27, amounting to $170.8 billion, forecasts a deficit of $8.6 billion. Girard expressed confidence in the province’s financial foundations, indicating that Quebec’s economy is currently outperforming that of the rest of Canada.
Key Budget Highlights
- The budget focuses on critical areas such as homelessness, intimate partner violence, and housing.
- Over the next six years, Quebec plans to increase infrastructure investments by more than $2 billion, targeting health care, education, public transit, and the road network.
- Major funding is set aside for hospital expansions, addressing urgent healthcare needs across various institutions.
Challenges Ahead
Despite the optimistic financial assessment, Girard acknowledged challenges, including the impact of recent oil price increases and potential ongoing geopolitical stressors. The stability of anticipated economic growth, projected at 1.1% in 2026 and 1.4% in 2027, hinges on the continuation of current tariff rates.
Quebec’s economy is notably affected by U.S. trade policies. The finance minister presented two scenarios regarding economic performance in light of trade negotiations. A possible recession could lead to a slight contraction, while a resolution could encourage growth.
Political Reactions and Future Leadership
The budget has received mixed reactions. Pascal Paradis, an MNA from the Parti Québécois, criticized its longevity, suggesting that it lacks forward-thinking measures, particularly regarding gasoline prices. CAQ’s leadership race following Premier François Legault’s resignation has also created uncertainties around fiscal plans.
Girard announced the allocation of $250 million per year over the next five years to the CAQ’s next leader for electoral commitments. This decision has drawn scrutiny from opposition leaders, urging responsible use of funds to support vulnerable populations.
The upcoming budget aims to address immediate concerns while laying the groundwork for future fiscal management. With the October election on the horizon, Girard’s emphasis on a responsible budget reflects a strategic approach to navigating economic challenges.
