Quebec's deficit will be lower than expected
Quebec Finance Minister Eric Girard responds to the Opposition during Question Period at the Quebec National Assembly, Thursday, April 24, 2025. (Jacques Boissinot/The Canadian Press)
Quebec's Finance Ministry says it expects the 2024-2025 deficit will be $3.2 billion less than predicted in the March budget.
During the budget announcement, Economy Minister Eric Girard said last year's deficit didn't hit the $11 billion mark it had first projected and was at $10.4 billon.
In a new preliminary report released by the Ministry Friday, that number melted down to $7.3 billion for 2024-2025, representing 1.2 per cent of Quebec's GDP.
That number takes into account $2.4 billion in payments to the Generations Fund, which is dedicated to repaying Quebec's debt.
The exact amount of Quebec's deficit for the 2024-2025 fiscal year will be confirmed in the fall.
The ministry attributes the revised numbers to a $2.3 billion decrease in government spending and a 'resilient' provincial economy.
'The financial situation for the 2024-2025 fiscal year has been revised positively thanks to an increase in revenue of nearly $1 billion and a decrease in expenditure growth from 7.7 per cent to 6.2 per cent,' Girard said in a statement.
Meanwhile, economic growth was up by 1.3 per cent in 2024, compared to 0.6 per cent in 2023.
The Ministry said it noted an increase in tax revenue from personal and corporate income taxes as well as consumption taxes. Hydro-Québec also saw an uptick in revenue.
'This positive revision is the result of measures taken over the past year to ensure more effective and targeted management of spending in order to stay within the allocated budgets,' the ministry said in a news release.
Quebec noted it spent more than expected in health and social services, education, families and transportation. It spent less on employment and solidarity, housing and municipal affairs, energy, and the environment.
The Coalition Avenir Québec has come under fire over budget choices, including its recent decision to slash $570 million from the education network and refusing to allow schools to run on a deficit.
The health-care system also saw its budget slashed as the province tries to eliminate a $1.5-billion deficit in the network, leading to thousands of job cuts.
Faced with global economic uncertainty, the government expected an $13 billion deficit for 2025-2026, one of the highest on record for Quebec.
But Girard maintains he wants to return to a balanced budget within the next five years, even with American President Donald Trump's rollercoaster trade war.
Also on Friday, Trump said he was ending all trade talks with Canada. The president imposed 50 per cent tariffs on aluminum and steel, which impacts Quebec's metal workers.
As of March 31, the province's debt is 38.6 per cent of its GDP, which the government says is 0.1 per cent lower than projected in its 2025-2026 budget.
In April, Quebec's Standard & Poor's credit was lowered and the company said it did not expect new measures to have any meaningful impact on its standing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
26 minutes ago
- CTV News
The credit card habits that are putting Canadians deep in debt
We talk five common types of debt and how to deal with each one. Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. Credit cards, when used responsibly, can be useful financial tools that help you build your credit profile and can help you earn rewards and cash back for your purchases. For many Canadians, though, they've become a source of growing debt and financial stress. With inflation driving up everyday costs and interest rates still remaining high, more people are relying on credit to make ends meet. The problem? Small balances can quickly turn into long-term debt, especially if you're only making minimum payments or juggling multiple cards. Below, I'll break down some of the most common bad credit card habits so you can avoid getting trapped in a debt cycle. Canada's growing debt problem According to Equifax Canada, credit card balances have reached record highs in recent years, with younger Canadians between 25 and 45 carrying some of the fastest-growing debt loads. As everyday essentials become more expensive and wages struggle to keep up, more people are turning to credit just to get by. What makes credit card debt especially problematic is its high interest rate, often ranging from 19 per cent on the lower end to 28 per cent or more on the higher end. Unlike a car loan or personal loan, credit card interest compounds quickly, making it easy to fall behind even with small balances. Once you start carrying a balance and only make the minimum payment, it can feel like you're stuck in an endless cycle. 5 bad credit card habits to avoid Between inflation, rising borrowing costs, and poor credit habits, many are finding themselves financially vulnerable. Understanding how credit card debt builds and the habits that make it worse is the first step toward breaking the cycle and regaining control of your personal finances. 1. Only making the minimum payment One of the simplest ways credit card companies lure customers into debt cycles is by advertising a deceptively low minimum payment. Your minimum credit card payment may only be a fraction of what you'd pay if you borrowed the same amount from a bank in the form of a personal loan. If you're carrying over a large balance from one month to the next, only making your minimum payment means that you'll be forking over a lot of interest. Often, 75 per cent or more of your minimum payment will go purely to the monthly interest fee (charged for carrying a balance), meaning that you'll barely make a dent in your actual principal balance. Carrying over a high balance on your card will also increase your credit utilization rate, which can negatively affect your credit score. 2. Treating credit like free money With an extra $2,000 at your disposal, the possibilities can seem endless. The new camera you want, the vacation you've been dreaming about, and the car parts you've been eyeing are now just a simple swipe away. When combined with the allure of a low monthly payment, the temptation to treat your available credit card balance like lottery winnings can be tempting. One of the first rules of building your credit is that credit cards should only be used to cover expenses that you can already afford with the money in your bank account. Use the cards to cover planned expenses, and then make sure you pay the amount off before the next billing cycle. This is, by far, the most responsible and effective way to use your credit card. By only using your card for what you can already afford, you'll be able to easily pay the balance off, which means you'll avoid interest fees while also being able to take full advantage of any cash back or rewards offered for using your card. 3. Not paying attention to your interest rate Credit card interest rates are variable, meaning that they can change monthly depending on the economy, your changing credit score, or simply the whims of your credit card company. Many credit cards offer a low or no-interest introductory period for the first few months (or even a year) of owning your card. While this can be helpful for a balance transfer to pay down another high-interest debt within that short period, it can also trap you into a false sense of security. As soon as the introductory rate is over, your rate will jump right back up. If you haven't paid the balance off by then, you'll suddenly be faced with mounting interest fees that will leave you feeling stuck. 4. Relying on credit to cover basic expenses If you find yourself relying on credit cards to cover basic expenses like groceries, fuel, utility bills, or rent, then you have another problem — your income is too low or expenses are too high. For example, if your monthly expenses are $3,000, you're only earning $2,700, and you're relying on credit to cover the remaining $300, then you'll quickly mount up debt. If you find yourself in this situation, the best thing you can do is to increase your income by picking up a side job or asking for a raise. Simultaneously, you should also find ways to decrease your monthly living expenses so that you're not living above your means. 5. Missing your monthly payment Missing your monthly payment typically comes with a late fee, which is just money thrown down the drain. If you consistently miss your payments, you could end up throwing hundreds of dollars away over the course of a year. In addition to the wasted money, it can also hurt your credit score. If you're more than 30 days late on a payment, the credit card companies may report this to Equifax and TransUnion — the two major credit bureaus. This will negatively impact your score and will remain on your credit report for years. Breaking the cycle By avoiding these poor credit card habits, you'll be able to build a solid credit profile for yourself and keep yourself from getting into a cycle of negative revolving debt. If you're already stuck in a cycle, it's important to face your situation and be accountable. With a solid plan, consistency, and a little bit of self-sacrifice, you can get out of debt and get back on the right track. More from Christopher Liew:
CTV News
an hour ago
- CTV News
‘A no-brainer': Some bosses happily giving staff Monday off along with Canada Day
A boy reaches for a Canadian flag on Canada Day in Vancouver, Monday, July 1, 2024. THE CANADIAN PRESS/Ethan Cairns TORONTO — Anyone who works Monday to Friday and is keen for a long weekend this Canada Day has likely had to do a bit of calendar juggling to cope with the ill-timed holiday. The stat day falls on a Tuesday this year, forcing many to work an odd Monday squeezed between days off, unless they burn a vacation day to eliminate the wonky schedule. Some startup companies say they're calling Monday a wash and giving staff a paid day off in order to smooth out the mid-week quirk and create a long weekend. It might not make sense on paper, said Klarify founder Moody Abdul, but he said he believes in prioritizing employee happiness. 'It's that, 'if I take care of you, you'll take care of us' kind of mentality,' Abdul said. Connecting the Canada Day holiday to the preceding weekend is just one way to demonstrate worker appreciation, said Abdul, whose company provides AI-driven note-taking and administrative tools to therapists. For those in Quebec, it's the second holiday Tuesday in a row, after Saint-Jean Baptiste Day on June 24 forced many Fête nationale celebrants to grapple with their own odd workweek. But with Canada Day following so close behind, it's not uncommon for Quebecers to take the whole week off between the two holidays, much the way many treat the stretch between Christmas and New Year's. Of course not every employer can offer such accommodations, and full-time workers with less shift leeway will have to choose to take a vacation day or just make do with an odd schedule next week. Ani Siddique, a research assistant at Sunnybrook Health Sciences Centre in Toronto, said he asked far in advance for Monday off in order to get ahead of colleagues with the same idea. 'I had to ask for it but I planned for things one or two months in advance,' he said. Morad Affifi, who sat in a downtown park after a shift Friday, said the majority of his planned Canada Day festivities take place over the weekend but he, too, dipped into his vacation bank to avoid working Monday. Suze Mason, co-founder of the digital health platform Sprout Family, said her five staff members have the Monday off and she didn't expect the move to have much of an operational impact on her company. Sprout Family helps co-ordinate fertility care through workplace benefits programs. She said many of its clients, including larger Canadian organizations, plan to treat Monday like a holiday. 'It felt like it was the right business decision to give our employees a day to rest and recharge, while also not having as much of a direct impact on the business,' Mason said. Mason said extending the holiday to match that of the companies Sprout Family works with can also make it easier for staff to disconnect, knowing they aren't missing out on anything crucial. 'Sometimes when you're on vacation and the business is racing ahead without you, it can feel stressful,' she said. Vineet Johnson, founder and CEO of IRegained, said he's made it a recurring practice to bridge awkward gaps between days off when they occur. Johnson, whose company develops neuro-rehabilitation devices, said he did the same last December when Boxing Day fell on a Thursday and otherwise would have forced people to return to work for just one day before the weekend. 'It's an easy incentive, a no-brainer incentive,' said Johnson. With files from Natasha Baldin in Toronto. This report by The Canadian Press was first published June 28, 2025. Nicole Thompson, The Canadian Press
National Post
an hour ago
- National Post
'Political expediency': Lawyer for IDF soldiers critical of war-crimes probe
There is a growing backlash after the RCMP announced this month it is investigating whether Canadian citizens involved with clashes in or around Israel were in contravention of this country's Crimes Against Humanity and War Crimes Act. Article content Amid outcry from Jewish groups, the force said it wasn't a criminal probe, but to 'collect, preserve and assess information' for potential future prosecutions. Article content Article content Article content Foreign governments, such as Belgium and Brazil, have also opened investigations into their own citizens who served with the Israel Defense Forces. Article content Article content Lt.-Col. (ret.) Maurice Hirsch, director of the Initiative for Palestinian Authority Accountability and Reform, at the Jerusalem Center for Public Affairs, suggests these are politically motivated probes. Article content He has been retained by IDF soldiers who have been questioned by foreign government representatives. Hirsch has previously served as senior legal analyst for Human Rights Voices in New York, lawyer for the Israel Defense Forces, director of the legal department for Palestinian Media Watch, senior military consultant for NGO Monitor, and adviser to the Israeli Ministry of Defense. Article content I can't tell you exactly as to what their motivation is, but I believe that it's somewhere in the realms of political expediency, and internal demographic politics. It requires these governments to almost change what they've been doing traditionally, even to the point of potentially abandoning allies. Article content Article content Their voter base has changed. And so now you have a situation where you need to almost pander, to cater, to a more fringe population. Article content Article content In May, U.K. government lawyers told the High Court that there was no evidence Israel was deliberately targeting civilians in Gaza, and that evidence exists of Israel making efforts to limit harm to civilians. If the government doesn't believe that war crimes are being committed, then obviously they won't then take that forward, and actively engage in an investigation of something that they don't believe is happening. Article content But if the government is so prejudiced, and predisposed, that war crimes are being committed, then obviously you launch an investigation. Article content Video footage, forensic analysis, operational logs — all impartially examined. What they have is so weak and poor, it's impossible to say it's 'evidence.' I think it's just so circumstantial and flimsy, even imagined.
