The Generations
Fund

Budget 2021-2022

Sums Dedicated to the Generations Fund

The Act to reduce the debt and establish the Generations Fund was passed on June 15, 2006 with the goal of reducing Québec’s debt burden.

The Generations Fund is a fund dedicated exclusively to repaying Québec’s debt.

In order to finance the Generations Fund, we have turned to our most important renewable collective resource: water, Québec’s blue gold.

The Generations Fund is financed by revenue sources dedicated to debt repayment and consisting of, in particular, water-power royalties from Hydro-Québec and private producers of hydroelectricity.

The Generations Fund also receives sums relative to the indexation of the price of heritage electricity, an additional contribution from Hydro-Québec, mining revenues, the specific tax on alcoholic beverages, the liquidation of unclaimed property administered by Revenu Québec, a portion of the proceeds of government asset sales, and gifts, legacies and other contributions received by the Minister of Finance.

The Act also allows the government to order that a part, which it establishes, of any sum that would otherwise have been attributed to the General Fund of the Consolidated Revenue Fund be allocated to the Generations Fund.

The sums dedicated to the Generations Fund are deposited with the Caisse de dépôt et placement du Québec and managed in accordance with an investment policy determined by the Minister of Finance, in collaboration with representatives of the Caisse.

The Generations Fund should stand at $15.0 billion as at March 31, 2022

Taking into account the deposits made since the creation of the Fund and those forecast, as well as the use of the Fund to repay borrowings on financial markets, the book value of the Generations Fund is expected to stand at $15.0 billion as at March 31, 2022 and $30.3 billion as at March 31, 2026.

Growth in the book value of the Generations Fund as at March 31
(millions of dollars)

Change in the book value of the Generations Fund (millions of dollars)

Deposits in the generations fund provided for in the Budget 2021-2022

Deposits in the Generations Fund help to reduce the debt and thus to improve intergenerational fairness. That is why the government has chosen to maintain these deposits, despite the expected deficits.

As part of the Budget 2021-2022, the government is projecting deposits of dedicated revenues in the Generations Fund totalling $3.0 billion in 2020-2021, $3.1 billion in 2021-2022, $3.2 billion in 2022-2023, $3.8 billion in 2023-2024, $4.1 billion in  2024-2025 and $4.2 billion in 2025-2026.

These deposits will come from the following sources:

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