Quebec Finance Minister Carlos Leitao says he’s not worried that slower-than-projected growth will threaten his his goal of reaching a small surplus.Jacques Boissinot/The Canadian Press
The Quebec government is on schedule to balance its budget this year and has decided to open the money tap a little for the province's beleaguered education system.
Finance Minister Carlos Leitao delivered the province's fiscal update on Thursday, forecasting a $1.5-billion surplus this year, down slightly from the original $1.6-billion projection. Mr. Leitao said economic growth is weaker than expected at 1.5 per cent, down from his forecast six months ago of 2 per cent.
But Mr. Leitao said he is not worried further economic deterioration could threaten his goal of reaching a small surplus. "It will take some unexpected disaster for us not to reach our target this year," Mr. Leitao said. "I'm not too worried about that."
Mr. Leitao relented on a near-freeze in education spending implemented in the budget six months ago, announcing $20-million extra to be spent immediately on primary and secondary schooling and $80-million next year. Parents and teachers have taken to the streets in recent months to protest against cuts to education services. Teachers, along with other public servants, are negotiating a new contract amid monthly rotating strikes.
"We have finally regained total control of our finances and we are in a position to reinvest in public education," Mr. Leitao said. "Last year's deficit is much smaller. This year, we are right on track."
The government also confirmed a further $120-million cut in funding for the province's publicly financed daycare program for 2016-17. The program has been a prime Liberal target for cutbacks. System advocates say they will have to cut thousands of jobs to meet the latest cut.
"They're taking away from little brother to give to big sister," said Parti Québécois finance critic Nicolas Marceau, who pointed out the ratio of GDP to debt has deteriorated since the budget.
"It shows stagnation in the economy," Mr. Marceau said. "Austerity measures are self-defeating, and that's where we are in Quebec."
Philippe Couillard's government has bristled at critics who described the most recent two budgets as part of an austerity program, given overall spending has grown slightly. Most of that spending growth has gone to health care, while other programs have had budgets frozen or cut, with hikes in service fees or cuts in services.
Les Perreaux