Ministère des finances du Québec
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2007-2008 BudgetWebcast


Quebecers' priorities

Health

Since 2003

  • Rise of $4.4 billion in the health budget

With the 2007-2008 Budget

  • 6% increase in the health budget to $1.3 billion
  • 2/3 of the growth in spending is going to health and social services
  • Confirmation of the creation of a fund for the promotion of health and healthy lifestyles in partnership with the Fondation Lucie et André Chagnon: $400 million over 10 years
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Education

Since 2003

  • $1.7 billion reinvested in education

  • An additional $320 million for post-secondary education

With the 2007-2008 Budget

  • 4.4% increase in the education budget to $567 million
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A lighter tax burden

Since 2003

  • The government has given $3.8 billion back to Quebecers through income tax reductions.

  • All Quebecers who pay income tax—3.4 million people—have benefited directly from these tax cuts.

  • Québec taxpayers are no longer the most heavily taxed people in North America.

With the 2007-2008 Budget

  • As of January 1, 2008: tax reduction of $250 million for 2.4 million Quebecers

  • The series of measures announced in the 2007-2008 Budget, together with retirement income splitting, will put an additional $464 million back into Québec taxpayers' pockets. This does not take into account the indexation for 2008, evaluated at $355 million.

  • In 2008, Québec will have the sixth-lowest tax burden of the Canadian provinces.
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Support for businesses

Since 2003

  • Enhancement of the competitiveness of the corporate tax system

  • Lowering of corporate taxes by $825 million

  • Reduction in the tax rate for SMEs to 8%

  • Introduction of a capital tax credit for manufacturing businesses that invest to upgrade their facilities

  • Elimination of the tax on capital for 75% of businesses

With the 2007-2008 Budget

  • Raising of the capital tax credit from 5% to 10% for investments in manufacturing and processing equipment. This credit is also extended until 2012.

  • Almost all of Québec’s 20 000 manufacturing firms that invest in manufacturing and processing equipment will no longer pay the tax on capital.
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Infrastructure renewal

Since 2003

  • Investment of $16.1 billion in infrastructure development and maintenance

  • Increase in assets maintenance budgets for health and education infrastructures from $645 million to $1.2 billion

With the 2007-2008 Budget

  • $7.9 billion over four years for highway infrastructure: roads, bridges and viaducts

  • $2.3 billion over four years for public transit, drinking water supply, wastewater treatment and local road networks
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