Quebec’s finance minister reported Friday that the province’s economy has performed better than projected over the last fiscal year, resulting in a narrower operational deficit and a more favourable fiscal position than budget estimates indicated.
Deficits lower than budgeted
Finance Minister Eric Girard said Quebec recorded an operational deficit of $5.5 billion for the fiscal year that ended in March, equal to about 0.9 per cent of gross domestic product. When legally required payments into a debt-repayment fund are factored in, the total shortfall rises to $7.8 billion.
"The province’s economy is faring better than expected,"
The operational shortfall marks a notable improvement from the $11.4 billion operational deficit anticipated in the 2025-26 budget and the $6.3 billion projection released in March. Girard attributed the improvement to a combination of higher tax revenues, federal transfers and what he termed prudent management of public finances.
Where spending and revenues moved
The finance minister said program spending rose by 2.9 per cent year over year, with priority areas including health care, drug-cost pressures, expansion of subsidized daycare spaces and public transit projects. The statement did not provide line-by-line figures in the release published with the fiscal update.
- Operational deficit: $5.5 billion (0.9% of GDP)
- Total deficit including debt-repayment fund: $7.8 billion
- Year-over-year program spending increase: 2.9%
| Measure | Amount |
|---|---|
| Operational deficit (actual) | $5.5 billion |
| Total deficit (with debt-repayment contributions) | $7.8 billion |
| Budget projection (operational) | $11.4 billion |
| March projection (operational) | $6.3 billion |
Context and implications
The updated figures come as Quebec — like other jurisdictions — navigates lingering global economic uncertainty. For provincial policymakers, a smaller-than-expected operational deficit provides more fiscal breathing room but does not eliminate longer-term pressures such as rising health-care costs and investments in childcare and transit that the government has flagged as priorities.
Girard's office highlighted federal transfers and improved tax receipts as important contributors to the better outcome. The announcement does not change obligations already committed through multi-year spending frameworks, and the province will still need to reconcile service demands with revenue trends in upcoming budgets.
Further detail, including departmental results and any revisions to forward-looking fiscal forecasts, is expected to appear in subsequent technical documents or the next budget cycle.
