Press Release

2003-2004 BUDGET
MAKING PUBLIC SERVICES A PRIORITY

Québec, June 12, 2003 – The 2003-2004 Budget Speech delivered by Minister of Finance Yves Séguin announced measures to tighten spending and reduce certain tax benefits for businesses. The revenue thus obtained will enable the government to address the priorities defined by the citizens while maintaining public services and doing more to support health, education, families and the most disadvantaged members of our society. “In light of the current situation regarding public finances, and the discipline required to address it, we have chosen to focus on public services. The Budget I am tabling is one both of adjustment and of commitment,” declared the Minister.

Today’s Budget provides for $45 800 million in program spending in 2003-2004, a 3.8% increase over 2002-2003. “We have made the health and education sectors a priority in this Budget. Together, these sectors account for more than two thirds of the overall program spending,” stressed Mr. Séguin.

Making health and education a priority

In keeping with the commitments made by the new government, the budget of the ministère de la Santé et des Services sociaux will rise to $19 115 million for fiscal 2003-2004, an increase of $1 287 million, or 7.2%, over spending in 2002-2003. This represents three quarters of total government program spending.

“As of this year, we will therefore be able to lay the groundwork for our strategy in this sector. That is why, on May 22, my colleague the Minister of Health and Social Services announced an action plan to begin making the shift we promised. He has been guaranteed the financial means to implement that plan,” stated the Minister.

The budget of the ministère de l'Éducation has been set at $11 485 million for fiscal 2003 2004, an increase of $397 million, or 3.6%, over spending in 2002-2003.

Supporting families and the most underprivileged

The 2003-2004 Budget Speech provides for greater support for families and the less affluent members of our society.

“Families are at the heart of our priorities. Accordingly, special attention is given to them in this Budget. We want to make it easier to balance family and work by making more daycare spots available, in keeping with taxpayers' ability to pay,” indicated Mr. Séguin.

The Finance Minister announced that 200 000 daycare spots would be made available by March 2006. To that end, an additional $20 million will be invested in 2003-2004, starting immediately, to accelerate the availability of new daycare spots.

The 2003-2004 Budget Speech also provides for $18 million in spending to respond to the repeated demands of parents of children with autism or other pervasive development disorders.

In addition, because the current housing crisis affects many households, the Finance Minister confirmed that the Minister of Municipal Affairs, Sports and Recreation would have an additional $10.7 million at his disposal to step up government action in this area.

The Minister also announced concrete measures to make it easier for underprivileged youth to enter the labour market. “We want to take up the major challenge of ensuring that as many young people as possible acquire initial vocational training, and enable them to get ahead in today's job market,” Mr. Séguin stated in announcing $5 million in aid for young people receiving social assistance who want to acquire their first work experience.

A new relationship with local and regional authorities

In the 2003-2004 Budget Speech, the Finance Minister expressed the government’s desire to use the talents and creativity of Quebecers to lead Québec to greater decentralization. “We want the citizens to take responsibility for the future of their communities and their regions.”

Mr. Séguin also said that the government has undertaken to rethink its financial relationship with the municipalities. “We intend to comply with the principles of the city contracts reached with Québec and Montréal. But we will be initiating talks with these cities to bring the amounts committed under these contracts more in line with our financial resources,” stressed the Minister.

Finally, the Minister announced an additional $130 million for the funding of infrastructure projects in order to honour the commitments made by the Québec government to certain municipalities.

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