Quebec Finance Minister Eric Girard is defending his government's plan to eliminate the province's deficit by 2029-2030, despite sharp criticism from the province's auditor general who calls the five-year roadmap "incomplete" and lacking crucial details.
Auditor General Raises Serious Concerns
In a report tabled during the same week Girard presented his fall economic update, interim auditor general Alain Fortier identified significant gaps in the Coalition Avenir Québec government's financial plan. The audit reveals the government has failed to identify more than half of the measures needed to achieve its balanced budget target.
Fortier's assessment highlights even deeper concerns, noting the plan contains no analysis of the government's capacity to fund long-term health and education commitments while pursuing fiscal balance. The report also criticizes the government for failing to account for Quebec's aging population and shifting demographics in its projections.
Historical Deficit Context and Government Response
The auditor's report provides sobering historical context, noting Quebec is on track to record nine consecutive deficits - the longest such streak since the adoption of the Balanced Budget Act in 1996.
In his November economic update, Girard slightly improved the deficit projection for 2025-2026, lowering it from $13.6 billion to $13.4 billion. The plan relies on limiting spending increases in health and education to 2.1 percent and 1.6 percent respectively - rates that Fortier notes don't cover normal cost increases in these sectors.
Girard's ministry responded to the auditor's concerns in writing, acknowledging the challenges of presenting a return-to-balance plan during periods of "great economic uncertainty" while committing to consider the auditor's suggestions.
Minister Defends Plan Amid Tight Margins
Facing reporters at the National Assembly, Girard insisted his plan remains credible despite the criticism. "We need to be aware that in Quebec we have set the bar very high," Girard stated, emphasizing the goal includes balancing the books after contributing to the Generations Fund, the government's debt-reduction vehicle.
The finance minister acknowledged significant gaps that need addressing: $1 billion in 2027-2028, followed by $2.5 billion in each of the subsequent two years. Girard indicated that once current economic uncertainties, including tariff wars with the United States, resolve, the government would outline specific measures to close these gaps.
Speaking to the Chamber of Commerce of Metropolitan Montreal, Girard was blunt about the challenges ahead. "The plan to return to balanced books is tight," he told the audience. "We don't have much leeway." He went further to acknowledge that if Canada and the U.S. fail to reach a trade agreement next year, balanced books by 2029-2030 would become unachievable.
Despite the fiscal constraints, Girard's economic update included some relief for Quebec workers. Starting January 1, 2026, workers will see reduced contributions to the Quebec Pension Plan and Quebec Parental Insurance Plan, putting an average of $182 extra annually in their pockets - a measure that costs the treasury nothing due to surplus positions in both funds.
Girard's next budget, scheduled for March 2026, will be the government's final economic plan before the 2026 general election, setting the stage for what promises to be a heated debate over Quebec's fiscal future.
