A deficit of $ 4.9 billion for the Quebec state from April to June
For the current fiscal year, the Legault government expects a deficit of $ 14.9 billion, which takes into account a provision of $ 4 billion to meet the needs caused by a second wave of the number of COVID infections -19.
Share September 25, 2020 5:13 p.m. Share A deficit of $ 4.9 billion for the Quebec state from April to June La Presse Canadienne MONTREAL – The first quarter of the current fiscal year ended with a deficit of about 4 , $ 9 billion for the Quebec state, while the COVID-19 pandemic generated significant expenses and plunged revenues since the economy was slowing down.
This amount, which appears in the Monthly Report on Financial Operations for the period from April to June, unveiled late Friday afternoon, takes into account a payment of $ 589 million to the Generations Fund – a tool aimed at reduce the debt of the province. The shortfall is $ 4.3 billion excluding this sum.
During the same period last year, a surplus of $ 824 million, after payment into the Generations Fund, was generated. The health crisis caused by the spread of the new coronavirus has turned everything upside down. In the first quarter, Quebec saw its consolidated revenues decline to $ 25.4 billion, down 11% from a year ago.
All of the categories in the own-source revenue table – revenue that is not generated by government enterprises – posted declines. The most significant declines were observed in corporate tax (-33.7%) and consumption taxes (-26.2%).
Revenues of Crown corporations plunged about 60% to $ 372 million as the pandemic caused many temporary closures of casinos, gaming halls and outlets operated by Loto-Québec. The drop in energy consumption in the province and the drop in export prices are among the factors that affected Hydro-Québec.
Conversely, portfolio spending jumped 11% to $ 27.8 billion, driven mainly by a 21.3% jump in health and social services, which were heavily used in the context of the pandemic.
Quebec, however, saw federal transfers climb 15.6% to $ 6.8 billion, thanks in part to health-related amounts.
For the current fiscal year, the Legault government expects a deficit of $ 14.9 billion, which takes into account a provision of $ 4 billion to meet the needs caused by a second wave of the number of COVID infections -19. Quebec will look to the stabilization reserve to balance the budget.