Province reports narrower operational deficit amid improved receipts
MONTREAL — Quebec’s public accounts for the fiscal year ending in March show the province performed better than anticipated, Finance Minister Eric Girard announced, with the operational deficit coming in at $5.5 billion, or about 0.9 per cent of gross domestic product.
The provincial government’s published numbers contrast with the shortfall projected in the 2025-26 budget, when the operational deficit was forecast at $11.4 billion. In March that projection was revised to $6.3 billion. The minister credited a mix of revenue gains and federal transfers, along with restrained spending choices, for the improved result.
"The operational deficit had been projected at $11.4 billion in the 2025-26 budget and at $6.3 billion in March," the finance ministry said in a statement.
When legally mandated contributions to a debt-repayment fund are counted, the province’s total deficit rises to $7.8 billion. The distinction between the operational deficit and the total shortfall reflects accounting treatments that place required debt repayments outside the operational balance.
Where spending grew
The government says overall program spending increased by 2.9 per cent over the year, with priority areas including health care, prescription drug costs, expansion of subsidized daycare spaces and public transit investments.
- Operational deficit: $5.5 billion (0.9% of GDP)
- Projected in 2025-26 budget: $11.4 billion
- March projection: $6.3 billion
- Total deficit including debt-repayment fund payments: $7.8 billion
- Program spending growth: 2.9%
Context and implications
The numbers suggest Quebec emerged from a challenging fiscal period with stronger-than-expected tax revenue and the benefit of federal transfers. For residents, the figures signal that despite a persistent deficit, provincial priorities such as health and child-care expansion continued to receive funding. For policymakers, the smaller operational deficit may provide some breathing room when considering future program commitments, capital projects and debt-management strategies.
Quebec’s accounting choices — particularly separating operational balances from debt-repayment obligations — will remain central to public debate. Analysts and opposition parties often focus on the operational deficit as a measure of day-to-day fiscal health, while the total deficit, which includes legally required debt-repayment fund contributions, captures the broader impact on the province’s accounts.
| Measure | Amount |
|---|---|
| Operational deficit (2025-26) | $5.5 billion |
| Operational deficit (budgeted) | $11.4 billion |
| Operational deficit (March projection) | $6.3 billion |
| Total deficit (including debt-repayment fund) | $7.8 billion |
| Program spending change | +2.9% |
Finance officials pointed to targeted spending increases while attempting to hold overall growth in check. The outcome reflects a balancing act familiar to provincial governments: funding public services and infrastructure while managing deficits and long-term debt pressures.
The Canadian Press first reported the finance minister’s statement on July 17, 2026.
