Quebec Auditor General Warns Next Government Faces $5 Billion Budget Hole
Quebec’s next government will face a projected $2 billion in budget cuts by 2027-2028 and up to $4.85 billion in 2028-2029 to meet the province’s Balanced Budget Act requirements, according to a pre-election report by Auditor General Christine Roy. The findings, released Monday, highlight the financial pressures facing the incoming administration ahead of the Oct. 5 election, as the province grapples with a $5.5 billion deficit for the last fiscal year, which ended in March, equivalent to 0.9% of GDP, as reported by the Quebec Finance Ministry.
Projected Budget Cuts
Roy’s report underscores that the next government must eliminate the deficit by 2029-30, a goal complicated by economic headwinds including stagnant population growth, slowing domestic demand, and the impact of U.S. tariffs and global conflicts. The auditor general warned that “the government will reduce the funding of certain activities and programs,” potentially affecting public services. “This will be demanding for the beneficiaries of these activities,” she stated at a news conference in Quebec City on Monday.
Financial Pressures
The financial challenges are compounded by the province’s reliance on the Balanced Budget Act, which mandates deficit elimination by 2029-30. The report details that the 2027-2028 fiscal year requires $2 billion in savings, with an additional $1.85 billion shortfall projected for 2028-2029, raising the total needed to $4.85 billion. These figures align with the Montreal CityNews’ report, which cited the auditor general’s analysis of the 2026 pre-election report, emphasizing the need for years of fiscal restraint to comply with the law.
Minister’s Response
Quebec Finance Minister Eric Girard acknowledged the deficit in recent budgets, arguing that leaving the shortfall to be addressed in future years avoided unnecessary cuts amid economic uncertainty. The Ministry of Finance’s response to the auditor general’s report noted that the deficit is calculated after payments to the Generations Fund. Before the payment, there would have been a budget surplus in 2029–2030. While the auditor general deemed the government’s assumptions “plausible,” she noted that achieving them will be a “challenge.”
Election Context
The findings come as the province prepares for its October election, with political parties under pressure to address fiscal responsibility. Roy’s report, part of a broader effort to enhance transparency, highlights the tightrope walk between maintaining public services and meeting long-term budget targets.