Quebec voters are now presented with a clearer view of their choices in the upcoming election, as all major provincial parties have released their financial plans. An analysis by CBC News indicates a diverse fiscal landscape, situated between two contrasting approaches to taxation and spending.
The Coalition Avenir Québec (CAQ) and Quebec Liberal Party propose moderate increases in annual spending, while the Parti Québécois (PQ) aims for a budget that is net-neutral. Conversely, Québec Solidaire (QS) plans significant boosts in funding for public transit, healthcare, and education, funded through higher taxes, including a new levy on assets exceeding $25 million.
Meanwhile, the Quebec Conservatives advocate for substantial spending reductions to facilitate significant cuts in income and corporate taxes. The chart below illustrates the projected spending hikes or reductions for each of the five main provincial parties, averaged annually against Quebec’s $171 billion budget for the 2026-27 fiscal year.
Regarding revenue projections, QS anticipates increased taxes and new revenue sources, while the Conservatives promise substantial tax reductions. The Liberals and CAQ foresee an additional $2.4 billion and $1.9 billion in annual revenue, respectively. Both the Conservatives and PQ propose eliminating billions in direct corporate subsidies, with the PQ intending to lower the general corporate tax rate from 11.5 to 9.5 per cent, and the Conservatives further reducing it to 4.7 per cent.
All five parties aim for a balanced budget by the fiscal year 2029-30 to comply with the province’s budget law, with the PQ aiming for balance a year earlier, by 2028-29.
However, Philippe Goulet Coulombe, an associate professor at Université du Québec à Montréal, cautions that economic assumptions underpinning these projections are uncertain. For instance, QS’s projection of generating $5 billion from a wealth tax is deemed risky due to its reliance on fluctuating asset values. Similarly, PQ, CAQ, and the Liberals’ dependency on over $4 billion in additional transfer fees from Ottawa is not assured.
The PQ’s plan relies heavily on achieving over $6 billion in savings through government bureaucracy efficiencies to balance the budget earlier. The Conservatives aim to balance the books through enhanced economic growth from deregulation, increased interprovincial trade, and revenue from shale gas extraction.
QS proposes freeing up $2.5 billion annually by suspending payments to the Generations Fund, which differs from the other parties’ plans to maintain these payments. Despite similarities in sector-specific spending across PQ, Liberals, and CAQ, the details of their promises vary significantly.
In summary, the distinct platforms of all five parties offer Quebecers a broad spectrum of choices, although each party’s financial projections carry inherent risks and uncertainties that could impact economic planning more than the forecasts themselves.