Quebec finance minister aims to boost economy by spreading out spending in first budget
Finance Minister Éric Girard delivered his first budget with the Coalition Avenir Québec government on Thursday, spreading out spending in many areas while hoping to improve the standard of living for most Quebecers.
In his mandate, one of his biggest challenges is spurring economic growth. Girard points out that economic growth in the years ahead is slowing down.
The budget forecasts an increase of 1.8 per cent in real GDP growth in 2019 and 1.5 per cent in 2020.
Canada’s economic growth is projected to increase by 1.7 per cent in 2019, but it is expected to remain the same in 2020.
While Girard is offering no personal income tax cuts, he said he is trying to stimulate the economy.
As part of his budget, there are pay roll tax cuts, incentives to retain workers in the labour force and new measures to attract immigrants. These are all part of a five-year plan to deal with a chronic labour shortage.
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The province is also increasing its spending to service the debt.
Almost $9 billion is being spent to pay it down in 2019-2020. This marks a 1.1 per-cent increase compared to the year before.
The budget projects lowering the debt to 45 per cent of GDP by next year. It currently stands at 46.1 per cent — the lowest it has been in 20 years.
“Quebec’s economy needs more private investment,” Girard said during his press conference. “More labour force, more education and less debt. And we’re working on all the fronts to increase GDP per capita.”
© 2019 The Canadian Press