Budget 2016-2017

Minister of Finance Carlos Leitão delivered Budget Speech 2016‑2017 on March 17, 2016.

The Québec Economic Plan

Consult the sections of the Plan The following links will open a PDF document in a new window


In Brief

For a modern, prosperous Québec

Return to a balanced budget thanks to good revenue management and exemplary spending control

Regaining the freedom to make our own choices and relying on the talents of Quebecers

Balanced budget 2016‑2017

* Represents total expenditure and other elements.
Note: Totals may not add due to rounding.

Spending growth will rise from 1.7% in 2015‑2016 to 2.7% in 2016‑2017, while the budget will remain balanced

  • In 2013‑2014, growth was 3.3% and the budget showed a deficit

Québec is the only Canadian jurisdiction, apart from British Columbia, to have a balanced budget in 2015‑2016

Despite the uncertain global economy, the economic climate in Québec remains favourable

  • The low Canadian dollar and growth in the U.S. economy are having a positive effect on our economy
  • Real GDP is expected to grow by 1.5% in 2016 and 1.6% in 2017

The Generations fund is 10 years old

The Generations Fund is the most powerful instrument of intergenerational equity ever adopted by a government

  • Deposits in the Generations Fund enable the government to reduce its debt burden
  • As at March 31, 2016, the ratio of gross debt to GDP will have started to decline
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A plan for success in education and higher education

$1.2 billion in additional investments

$500 million over three years to increase success

  • $300 million for an innovative learning environment to prevent drop outs
  • $120 million to promote academic success
  • $80 million to strengthen links between the education system and businesses in order to better meet labour market requirements

$700 million in education and higher education infrastructure

Increasing investments in the renovation and upgrading of educational institutions in order to:

  • Offer healthy, more stimulating learning environments
  • Increase access to sports facilities
  • Make institutions more eco‑responsible

Total investments of $4 billion in infrastructure for the next 2 years

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Support for businesses
Encourage innovation in a cleaner economy

Rénovert, a new tax credit of 20% for eco‑friendly home renovations, representing nearly $175 million in tax relief

An innovative society

  • Tax cut representing $135 million for innovative businesses
  • Over $160 million for a cutting‑edge digital strategy:
    • Integration of IT in SMBs
    • Support for major digital transformation projects
    • Québec Branché: support for digital access in all regions of Québec

Transformation to a knowledge‑based economy

  • Additional support of $16 million for college technology transfer centres to foster innovation in businesses
  • Support for the seed phase of innovative businesses:
    • $20 million for the AmorChem II fund
    • $15 million for the InnovExport fund
    • $30 million for a new fund in the clean technology sector
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Support for businesses
Support investment

Economic Plan 2016‑2017: Additional economic support of $3.6 billion by 2020‑2021

Increased support for Québec SMBs

  • Reduction in the Health Services Fund contribution, representing an additional amount of nearly $245 million. All told, the rate will be reduced by:
    • Nearly 50% for SMBs in the primary and manufacturing sectors
    • Over 25% for SMBs in the service and construction sectors
  • Additional support of over $32 million for exporting SMBs, for the marketing of Québec innovations

A new electricity rate discount for businesses representing $539 million to stimulate manufacturing investment

Support for key sectors for the development of all the regions

  • $67 million To support the tourism industry
  • $45 million To support the development of the agri‑food industry
  • $10 million To develop the Maritime Strategy
  • $70 million To draw up a new Québec aerospace strategy
  • $34 million To bolster competitiveness in life sciences
  • $34 million To foster culture and artistic creativity

$230 million for the forest sector: activities in all regions of Québec representing 60 000 jobs

  • Measures to increase competitiveness
  • Fostering investment and innovation
  • Banking on private forests to improve supply

Development of the Plan Nord and the mining sector

Investments of $620 million for mining site reclamation

  • Over $450 million for initiatives of the Société du Plan Nord
  • Enhancement of the tax credit for resources
  • Development of rail and port infrastructures in Sept‑Îles
  • Support for research in hydrometallurgy
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Families and communities
Stronger support for individuals and communities

Immediate reduction in the health contribution

Reduction of the childcare rate in respect of a second child

Assistance for the aboriginal community

  • Renovation of homes in the Algonquin community of Kitcisakik
  • Assistance for urban aboriginals

Labour market participation

  • Enhancement of work premiums to encourage labour market participation
  • Enhancement of the tax shield
  • Lowering of the eligibility age for the tax credit for experienced workers to 62
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A Message from the Minister of Finance

Budget 2016‑2017 marks a major milestone for our government in delivering on our commitments regarding public finance management and economic development. This second consecutive balanced budget, a first since March 2008, clearly shows that we have gotten our fiscal house in order and that we have laid a solid foundation on which to build our prosperity.

Today, Québec is in a much better position to address the challenges that are slowing the economy.

Together, we have regained the capacity to leave a modern, prosperous Québec for future generations.

I therefore invite you to discover the Québec Economic Plan and its measures seeking, among other things, to strengthen funding for education, support individuals and families, and foster the development of a changing economy.

Carlos Leitão
Minister of Finance

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