QUEBEC CITY – The Quebec economy is showing signs of recovery.
Finance Minister Carlos Leitao said Tuesday he is pleased with the latest quarterly results, which cover the three-month period between April and June 2014.
He said for the first time in three years, revenues in Quebec are growing faster than spending.
Revenues jumped by $591 million compared to the same time last year, rounding off at $17.6 billion.
Spending has also increased to the tune of $533 million, for a total of $19.3 billion.
“For health and education it’s particularly difficult because those networks are the ones who consume most of the government’s resources,” Leitao explained.
“The first quarter isn’t very worrisome because two months of that quarter were before the budget and we think, with the measures in the budget, we’ll be able to achieve the 1.8 per cent growth in program spending.”
The government’s objective is to rein in spending, from 2.8 per cent to 1.8 per cent.
“Quite frankly, we are on target but we’re taking all means to stay on target,” said Treasury Board President Martin Coiteux.
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Some feared that means program cuts.
Tuesday, another rumour was floated, that the Liberals will slash subsidies to private schools.
Last June, the Champoux-Lesage report showed private schools in Quebec are 75 per cent subsidized.
“This government doesn’t know where to go!” said CAQ leader François Legault.
“They’ve asked two commissions to give them some ideas.”
“You will probably see a few assumptions made by some people that are not necessarily coming from the government side in the coming days,” Coiteux responded.
“The truth is we’re examining all programs in all departments of the government.”
At least one idea is already being nixed; the Finance Minister confirmed Tuesday he will not raise Quebecers’ income taxes.
“Whatever tax cuts the federal government puts through soon we won’t offset that, we’ll let that flow to Quebec taxpayers,” he said.
In fact, the Couillard government is set on reducing income taxes, after the books have been balanced, as early as 2016-2017.
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