Political parties in Quebec face a daunting challenge in creating a credible financial plan to win over voters and secure power. Luc Godbout, the director of Taxation and Public Finance at the University of Sherbrooke, emphasizes the tight constraints on making financial commitments due to current public finances. Despite this, he acknowledges the likelihood of parties making promises during the election campaign.
Auditor General Christine Roy highlights the significant budgetary efforts needed in the coming years, with $2 billion required next year and additional efforts in the following years. She warns that decisions could impact public services and infrastructure investments.
Limiting spending growth will be crucial, as specified in the Auditor General’s report, which points out the challenge of balancing annual increases in government spending and collective bargaining agreements.
While unpopular budget decisions are unavoidable for the next government, raising taxes is even less favorable among voters concerned about living costs. A poll reveals that a majority of Quebecers prefer service cuts over tax hikes.
The pre-election report on public finances aims to provide transparency and prevent manipulation of financial parameters by parties. However, uncertainties such as the trade war between Canada and the US pose additional challenges to Quebec’s fiscal planning.
Economists stress the government’s role in stabilizing the economy during crises, acknowledging the need for prudent financial management given Quebec’s credit rating downgrade.
