2000-2001 Budget /

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Main points
Tax Reduction Health
Education and Youth Economy and Society

More for all
We made sound choices. We were able to balance the budget and now have a stronger economy. Today, we can all share the benefits of our good planning and start looking to tomorrow as we continue to modernize our economy.

By encouraging higher quality health and education services, reducing the tax burden of all Quebecers and helping to create jobs, the 2000-2001 Budget means more for all.

1999 :  Outstanding economic results
  - 3.7% economic growth
  - Jobless rate of 8.1% in December 1999, the lowest rate in over 25 years
  - Creation of 76 000 jobs, the best performance since 1987
  - 37% of all new jobs going to young people, the highest rate since 1973
  - 40 000 individuals no longer dependent on income security
2000 :  A promising outlook
  - Economic growth of 3.3%
  - 1% reduction in the jobless rate
  - Creation of 70 000 new jobs

 

Health
 
Major increase in funding
$2.7 billion more for health and social services

To ensure that all Quebecers continue to have access to quality health care services, the government is injecting $2.7 billion into this sector.

These sums will be used to, among other things, fund and balance the budgets of network institutions, cover the rising cost of existing public services and develop new services. Funding is also being allocated for the acquisition of new medical equipment to increase the quality of care. These investments will allow institutions to treat more patients, notably in the areas of radio-oncology and hemodynamics.

This major increase in resources will further enable the network to meet the challenges of an increasing demand for health care, due largely to the ageing population, and deal with the effects of advances in medical technology and of changing treatment methods.

The government will take extra care in putting the necessary mechanisms in place to see that these investments are managed as soundly as possible.

 

Education and Youth
 
Concrete support for young people
Over $1 billion for youth

At the recent Sommet du Québec et de la jeunesse, Québec's youth clearly stated what they want in their lives. This Budget commits the government to implementing concrete measures that will allow them to realize their dreams.

Promoting quality education
The government is providing substantial assistance to ensure young people get the best possible education and can follow their chosen path. Funding has been set aside for the hiring of more elementary and secondary school teachers and faster replacement of text books. In addition, the operating budgets of all educational institutions in the network will be increased considerably over the next three years.

Promoting initiative
Québec youth are dynamic, creative and full of initiative. To show its support, the Québec government has earmarked $120 million to finance the Youth Fund. This amount is in addition to an equivalent sum provided by private partners.

Promoting excellence
To encourage young people in the pursuit of excellence, be it in their studies, sports or their career, the government is introducing the following measures:

  • Tax-exempt bursaries
  • Tax credit for Québec's top athletes
  • Larger scholarships for master's and doctoral students
  • Internship and summer employment programs

 

Tax reduction
 
Benefits for all taxpayers
$4.5 billion in tax relief

The government is reducing personal income tax by $1 billion in the current year, $1.5 billion in 2001 and $2 billion in 2002. This means more money in the pockets of all Quebecers beginning in May of this year! The new tax cuts will benefit the middle class and families in particular.

Full indexation of the tax system
The purchasing power of all Québec taxpayers will be protected against inflation through the reduction of tax rates. In 2000, 2001 and 2002, tax cuts will far exceed inflation. As of 2003, the tax system will automatically be fully indexed.

More money in taxpayers' pockets
 
  2000 2001 2002
Two-income couple with 2 children
$40,000 + $322 + $753 + $1,183
$50,000 + $532 + $1,123 + $1,733
$75,000 + $477 + $888 + $1,443
$100,000 + $702 + $1,113 + $1,803
 
Single person
$20,000 + $105 + $258 + $411
$30,000 + $221 + $437 + $673
$40,000 + $276 + $494 + $782
$75,000 + $626 + $844 + $1,422
 
Click here for information about the tax reductions applicable to your situation.

Reduction of tax rates

 

Economy and Society
 
A modern economy geared to employment
$675 million for economic development

Buoyed by the success of its efforts in recent years, the government will continue to invest in economic transformation with a view to making Québec's economy more competitive and promoting job creation. Furthermore, to help support economic growth, it is providing substantial funding for municipalities and for the creation of a Québec infrastructure program.

Regional development
To bolster Québec's regional economies and create long-lasting jobs, the government is injecting $310 million into a wide range of measures, including assistance for the modernization of the pulp and paper industry and loan guarantees for small-business start-ups.

Business support measures
The government is also introducing important measures to support businesses. They include full tax exemption for 10 years for all major investment projects and improvement of the PIJCPF and Garantie-PME programs.

Québec on line
Middle-class and low-income families with at least one child will be entitled to financial assistance of up to 75% of the cost of Internet access and of the rental of the necessary hardware. In addition, SMEs will receive a tax credit equal to 40% of the cost of building an e-commerce site.

Gouvernement du Québec   |  © Gouvernement du Québec, 2001