Press Release No. 2

2004-2005 Budget Speech
Priority to health and education

“The 2004-2005 Budget delivers on our promise to give priority to health and education, as reflected in the spending increases of 5.1% for health care, 2.7% for education and 0.5% for all other departments.”

Québec, March 30, 2004 – In delivering the 2004-2005 Budget Speech, the Minister of Finance of Québec, Yves Séguin, confirmed the government’s commitment to give priority to health and education.

Our top priority: accessible, quality services for a healthier Québec

The Minister of Finance announced $1 billion in additional health spending, for a total budget of $20.1 billion in 2004-2005, an increase of 5.1%. “Before we came to power, the health budget was $17.9 billion. Since the election last April, we have increased it by $2.2 billion,” Mr. Séguin pointed out. He also observed that this year’s increase in the health budget represents nearly three quarters of the total increase in government program spending.

Mr. Séguin noted that in the longer term, “Population aging will lead to increased demand for health services. Expenditures in this sector accounted for only 35.2% of program spending in 1990-1991; today they represent 42.6% and could rise to 47% in 10 years.”

To meet this challenge, action is needed on two fronts, i.e. better organization of the health system, to make it more effective, more efficient and more attuned to the needs of patients, and improved financing.

Building on education and culture

Education is another priority. Accordingly, in 2004-2005 an additional $309 million is being allocated to this sector, whose total funding will reach $11.8 billion, a rise of 2.7%. “This significant gain will make it possible to support educational institutions in their efforts to provide our children and teenagers, the youth and adults of Québec, with quality education services resolutely geared to success,” the Minister of Finance indicated.

The Budget provides the necessary funding for incentives to improve the success rate of college students.

Homework assistance
Mr. Séguin also announced that funding will be provided to help implement homework assistance programs in primary and secondary schools.

In addition, to encourage healthy lifestyles, including taking part regularly in physical activities and a healthy diet, funds will be allocated to set up the Healthy, Fit Schools program.

Lastly, funds will be made available to hire professionals to ensure early detection and proper follow-up of students experiencing learning disabilities or behaviour problems. The addition of these resources should make it easier for children to adapt to school life, while providing assistance to parents and teachers.

Furthermore, the government must ensure that the thousands of new immigrants who arrive in Québec each year can realize their full potential. To enable those who do not sufficiently master the French language to learn it rapidly and effectively, the 2004-2005 Budget stipulates that the ministère des Relations avec les citoyens et de l’Immigration will receive an additional $5 million to improve the means of intervention in this area.

Essential support for Québec creators
Concerning culture, the Minister of Finance announced that creators and artists will now be able to acquire income-averaging annuities. In addition, performers will be able to claim a deduction of up to $15 000 of copyright income.

Lastly, to bolster the government’s assistance to creators and artisans of the film and television industry, the Minister of Finance announced that the tax credit for film and television production is maintained and will remain exempt from all tightening measures. Improvements will also be made to this tax credit so that it can now be claimed in regard to television variety and magazine shows.

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