Inside the Quebec Budget
Yesterday, Quebec’s Minister of Finance, Éric Girard, unveiled his eighth budget, titled A Responsible Budget with Targeted Measures for Quebecers. Unsurprisingly, the minister presented a restrained and responsible budget, focusing on the core missions of the state : infrastructure, health, and education.
The government’s budget was tabled in a particular context. In addition to polling at the bottom for several months, the Coalition Avenir Québec (CAQ) does not have a leader until April 12. However, in order to provide predictability to the public, the Minister of Finance wanted to present the budget before the leadership vote. Both candidates (Bernard Drainville and Christine Fréchette) were consulted to secure their approval. Mr. Girard also confirmed yesterday that the budget contains no new spending, but that a reserve has been set aside for the next premier, allowing that individual the flexibility needed to fund their commitments.
Despite the province’s economic situation, the minister remains confident in a return to a balanced budget. One week prior to the tabling, Mr. Girard reiterated several times in the media that the deficit from the previous budget had been revised to $12.4 billion, down from the initially announced $13.6 billion. In this context, the latest budget reflects a better fiscal situation than last year, although it remains in deficit, with a shortfall of $8.6 billion after contributions to the Generations Fund.
The budget includes several measures aimed at supporting industries most affected by tariffs imposed by the Trump administration, as well as uncertainty related to the conflict in the Middle East. More specifically, the government has proposed targeted measures to revive key sectors of Quebec’s economy and maintain public services:
Infrastructure Investment: The Quebec Infrastructure Plan (PQI) is increased to $167 billion over 10 years, a $5 billion increase over six years compared to the previous budget. A significant portion of these funds—71% (6% more than in the previous budget)—will be allocated to maintaining existing infrastructure in good condition, a request made by several groups and associations.
Economic Development: Encouraging greater private investment to support economic development and increase productivity. Specifically, $375 million will support high-potential business investments, and $1 billion in new capital will be added to an existing fund to position Quebec as a leader in the production and processing of critical and strategic minerals.
Provincial Competitiveness: The government is allocating $283 million over five years, including $73.3 million to support the growth of innovative industries and the adoption of advanced technologies, and $22 million to boost productivity in the construction sector. The minister also announced a new business innovation tax assistance regime, including a refundable tax credit for research, innovation, and commercialization (CRIC).
Environment and Climate Change: The government also reiterated its commitment to continue investing in the fight against climate change. A total of $8.2 billion is allocated to the 2026–2031 implementation plan of the 2030 Green Economy Plan. Full details of the plan will be officially unveiled by the Minister of the Environment in the coming weeks.
Healthcare: Health care also occupies a central place in the budget. In response to demographic changes, the government is allocating funds over five years to support access to medications ($756 million), continue efforts to reduce surgical wait times ($200 million), and strengthen health prevention initiatives ($100 million). The many concerns related to homelessness and mental health have not been overlooked. Indeed, $174 million is allocated to better address mental health challenges, including $38.2 million in 2027–2028 and $62.4 million in 2028–2029.
Behind the Scenes
Even before the budget was tabled, opposition parties were criticizing the government’s management of public finances in recent years and highlighting pressing needs in public services. For the new leader of the Quebec Liberal Party, Charles Milliard, the budget should have included significant measures to reduce the tax burden on SMEs, support housing construction, and better prioritize the PQI. For the Parti Québécois, still leading in the polls, expectations were modest. However, one conclusion is clear for its leader: in addition to increasing the debt, the CAQ has failed to deliver quality services to Quebecers.
What’s Next
Now that the budget has been tabled, it will be interesting to follow the debates surrounding the leadership race and to see how Christine Fréchette or Bernard Drainville will attempt to revive the party. While the budgetary directions are now clear, the two candidates nevertheless represent distinct currents within the coalition: one more focused on economic issues, the other more associated with cultural nationalism. The next premier will therefore have only a few months to implement their vision before the elections.
Alexis Morin
Public Affairs Associate