Ministère des Finances : 2002




Press releases 2002-2003 BUDGET $400 million for consumers and nearly $500 million for housing Québec City, November 1, 2001 — The 2002-2003 Budget brought down today by Deputy Prime Minister and Minister of State for the Economy and Finance Pauline Marois earmarks $400 million for consumers and nearly $500 million for construction and renovation of 40 000 dwellings. "Through these measures, we wish to support economic activity by boosting consumer confidence and respond to major housing needs, especially for modest-income households", the Minister said. $400 Million to stimulate consumption The government is introducing three measures to bolster consumer confidence: an additional payment of the GST credit, full indexation of the personal income tax system and indexation of social assistance benefits. Next month, all adult recipients of the QST credit will receive an additional $100. Accordingly, a couple that would have received $154 in December will instead receive a cheque for $354. Through this measure, the government will pay $250 million to some 2.5 million people. "We chose this method of reinforcing consumption because a percentage of recipients could not take advantage of the tax cuts announced last spring", Ms. Marois explained. It is also a way of rapidly injecting money into the economy. The tax system will be fully indexed on January 1, 2002, for the benefit of all taxpayers. In addition, the rate of indexation, which was set at 1.8% in the last Budget, will be raised to 2.7%, representing an additional $77 million in disposable income. This indexation applies to the three taxable income brackets, as well as to most of the tax credits. For a couple with two children and one income of $35 000, it will mean $169 more in disposable income. As of January 1, 2002, the government will also index all social assistance benefits at a rate of 2.7%. This indexation will be extended to persons with a severely limited capacity for employment as well as to persons who are able to work. This measure will benefit some 360 000 households, at a cost to the government of $75 million. Nearly $500 million to build or renovate 40 000 dwellings Ms. Marois also announced that the Québec government will be devoting a significant share of public investments to housing. "Our government will support the construction of 13 000 new housing units and the renovation of 27 000 others. This investment of nearly $500 million will improve the living conditions of many households with modest incomes", the Minister pointed out. New housing construction The 2002-2003 Budget sets aside $362 million for the construction of 13 000 new low-cost housing units under two programs. The bulk of this amount, namely, $257 million, will go to enhancing and renewing, for a period of five years, the AccèsLogis program, which allows housing cooperatives and non-profit organizations to offer community housing to modest-income families. The remainder is reserved for the implementation of a new affordable-housing program currently being negotiated with the federal government. Renovation of 27 000 dwellings The Québec government will invest $111 million over two years in the renovation of more than 27 000 dwellings under two programs. First, the sum of $95 million will be allocated to the Revitalizing Older Neighbourhoods Program, which aims to support cities in their residential renovation efforts in favour of people living in older neighbourhoods. More than 40 Québec municipalities with a high concentration of dilapidated housing already benefit from this program. Second, an amount of $16 million over two years is being set aside for the renewal of the RénoVillage program, which offers financial assistance to low-income homeowners in rural areas to enable them to repair major defects in their dwelling. - 30 - Source: Nicole Bastien Press Officer Office of the Deputy Prime Minister and Minister of State for the Economy and Finance Tel.: (418) 643-5270 nicole.bastien@finances.gouv.qc.ca Back to press releases menu