Quebec’s Finance Minister promises zero deficit by 2014

QUEBEC CITY – Despite sluggish economic growth, Quebec’s Finance Minister promised to achieve zero deficit by next year. Nicolas Marceau tabled his spring economic update, four months after he presented a no-frills budget. He says the weak global economy has necessitated a downward adjustment in Quebec. Slower than expected growth means the province will have to cope this year with a surprise shortfall of 565 million dollars.

“The level upon which we will grow is lower than before. The second effect is that the growth will be slightly less as well,” said Marceau.

Marceau said he’ll compensate by paying back less of the debt this year and by plucking 200 million dollars out of the province’s contingency reserves. The PQ government is also being “rescued” by additional federal transfer payments, although Marceau said Ottawa’s contribution is negligible.

“If we are reaching, attaining and maintaining budget balance it’s because we’re making significant efforts on controlling our expenditures,” he said.

In the House, Marceau’s spring economic update was showered with criticism.

“It was a bit ironic this morning to hear Mr. Marceau being happy of having more revenue from equalization payments, the reason of that is because Ontario performs better than Quebec so we shouldn’t be happy,” said CAQ leader François Legault.

Anemic growth, say the Liberals, will mean less money for social programs.

“If the revenues don’t increase again, they will have to increase their efforts on the expenses side, mainly in the public services, that’s one thing that will directly affect Quebecers,” said Liberal leader Philippe Couillard.

By choosing to table an economic update instead of a full-fledged budget this Spring, Marceau is sidestepping what could have been a dangerous confidence vote. It’s believed opposition parties are waiting until next year’s budget for a chance to topple the PQ government.