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Budget 2015-2016

Budget 2015-2016 - productivity, fairness, prosperity
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Webcast

Minister of Finance Carlos Leitão delivered Budget Speech 2015-2016 on March 26, 2015.

Economic Plan in Brief

A balanced budget in 2015-2016 for building our economy

  1. Achievement of budgetary targets
    • For the first time since 2009, the debt burden will decrease
    • For 2014-2015, the deficit will stand at 2.35 billion dollars, the target set in the June 2014 budget
    • In 2015-2016, Québec is returning to a balanced budget, after six years of running deficits
  2. An economic plan based on two objectives
    • Strengthening the conditions for economic growth by easing the tax load and stimulating investment and employment
    • Taking the measures necessary to ensure that public finances remain sound
  3. Economic growth is gaining momentum
    • The economic growth rate reached 1.5% in 2014, compared to 1.0% in 2013
    • It should accelerate to 2.0% in 2015 and 2016
  4. The economy will be supported by exports and household consumption, the primary drivers of growth

Nearly 52 000 jobs created since May 2014
(thousands)

  • December 2013: 4 070.7
  • April 2014: 4 042.2
  • February 2015: 4 093.9
Source: Statistics Canada.
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Supporting individuals

a 744-million dollar reduction in the tax burden for 4.5 million taxpayers

Gradual elimination of the health contribution as of January 2017

  1. Fostering labour market participation
    • Introduction of a tax shield starting on January 1, 2016 to encourage additional work effort
    • Enhancement of the tax credit for experienced workers as of 2016
    • A better match between training and jobs
      • Reduction in the administrative burden of businesses
      • Implementation of the Objectif emploi program
      • Enhancement of the workplace apprenticeship program
  2. New initiatives for communities
    • Support for the Fondation du Docteur Julien to expand the network to 42 social pediatrics centres
    • 3 million dollars for a program to assist seniors in paying municipal taxes
    • 4.4 million dollars over three years for the action plan to fight bullying
    • 284 million dollars to improve the housing conditions of the disadvantaged
    • Strengthening the contribution of immigrants to the labour market
  3. 27 million dollars over five years to implement a new action plan for the social economy
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Ensuring that businesses remain competitive

Gradual reduction in corporate taxes as of January 2017

A reduction of up to 215 million dollars per year in the tax burden by 2020
  1. Making the tax system more favourable to investment
    • Gradual reduction of the general corporate tax rate from 11.9% to 11.5%
  2. Reduction of the tax burden of SMBs
    • Reduction of the Health Services Fund contribution rate from 2.7% to 2.25% in the service sector
    • Reduction, from 8% to 4%, of the tax rate for SMBs in the primary sector, including forestry, fishing and agriculture
  3. Fostering the transfer of family businesses
  4. Improvement of certain sectoral tax assistance measures
    • Tax credits for the new economy, i.e. for the production of multimedia titles and the development of e-business
    • Investments of 2 million dollars per year to support business succession and mentoring
    • An increase in the rates of the tax credits for Québec’s cultural sector to promote original Québec productions
  5. Renewed support for labour-sponsored funds
  6. 32.5 million dollars to introduce the Québec aluminum development strategy
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1.5 billion dollars for the maritime strategy

  • 200 million dollars to accelerate investment in Québec's commercial port infrastructure
  • 400 million dollars to foster the establishment of logistics hubs
  • 450 million dollars to support private manufacturing investment in industrial port areas
  • 77 million dollars to expand marine tourism, in particular by developing cruise ship infrastructure in Montréal and the city of Québec
  1. Tax credit for the Gaspésie, Îles‑de‑la‑Madeleine and certain maritime region until 2020
    • Tourism sector of Îles‑de‑la‑Madeleine now eligible
  2. Investment tax credit for the regions until 2022
  3. Natural gas distribution in the regions
  4. Development of our natural resources
    • Relaunching of the Plan Nord
    • Enhancement of support for mining activity
    • Promoting the forest and wildlife sector
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The return to a balanced budget: an essential condition for building a strong economy

Budgetary balance (1)
(millions of dollars)

  • 2012-2013: -1 600;
  • 2013-2014: -2 824;
  • 2014-2015: -2 350;
  • 2015-2016: 0;
  • 2016-2017: 0;
1. Budgetary balance within the meaning of the Balanced Budget Act
  1. Ensuring disciplined management of public finances
    • Giving priority to health and education
    • Program review
    • Introduction of an offsetting mechanism with respect to public spending
    • Controlling the size of government
    • Three-year spending plan
    • Simplification of administrative structures

Program spending for 2015-2016 excluding the debt
(millions of dollars)

  • Other portfolios: 16 683, 25.1%;
  • Education: 16 926, 25.5%;
  • Health and social services: 32 851, 49.4%;