Faster Economic Growth Helps Quebec Cut Deficit, Boost Spending

  • Canadian province expects output to expand 6.5% this year
  • New expenses include one-time payment to offset high inflation
Eric Girard, shown in 2018, has revised down Quebec’s debt financing needs.Photographer: Christinne Muschi/Bloomberg
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Quebec’s economic recovery has opened room for the government to dole out cash to dull the bite of inflation, help train workers for sought-after jobs and shore up the Canadian province’s bottom line.

In a budget update released Thursday in Quebec City, the government said it expects a deficit of C$6.8 billion ($5.4 billion) in the current fiscal year, nearly half its March estimate. The improved fiscal outlook is mainly due to a surge in tax receipts, with the economy now seen expanding 6.5% this year compared to the 4.2% previously forecast.