For the PQ, balancing a budget is balance of ‘responsibility with ambition’

QUEBEC – The Parti Quebecois are calling it the “budget that restores balance” and the November budget aims to regain control of spending through “responsibility combined with ambition.”

In 1998, the PQ balanced the books for the first time in modern Quebec history and now it promises to balance the books again.

Faced with the highest debt to GDP ratio of any province, the PQ’s first budget plans to increase program spending in health, education, housing, business tax holidays and regional development.

These small increases in spending will be balanced with income gains from “sin tax” increases on cigarettes and booze, an infrastructure budget spending cap at $9.5 billion, $215 million a year in savings from the closure of Gentilly nuclear power plant, the indexation of electricity, efficiency savings in Loto Quebec, the SAQ and Hydro Quebec, the extension of bank contributions until 2019 and an increase of tax rate on earnings over $100,000 by 1.75%.

The government is hoping that income gains can be made from more efficient management of government ministries and Quebec-owned companies like Loto-Quebec, the SAQ and Hydro Quebec.

It will appoint an auditor to conduct performance evaluations of all government-run companies and subsiduaries.

The Health and Social Services Ministry is being asked to reduce administrative costs like travel, publicity and training by 25% (or $50 million) in 2012-2013 and Hydro Quebec is expected to make 2000 job cuts.

The question on everyone’s minds was whether the cuts and performance evaluations will result in job losses to the public service sector.

Quebec’s Finance Minister Nicolas Marceau said that’s not what the government wants, but he confirmed that “all ministries will contribute” to reducing the deficit.

“It’s what we need and it’s what we will achieve.”