Quebec will need $2 billion in savings next year to stay on balanced-budget track

Quebec's next government will need to find $2 billion in budgetary savings as early as next year to stay on course for a balanced budget by 2029–2030, according to the Quebec Auditor General's analysis of the 2026 pre-election report unveiled Monday.

The Balanced Budget Act requires the province to eliminate its deficit by the 2029–2030 fiscal year. In 2028–2029, the financial framework calls for additional savings of $3 billion, plus a $1.85 billion shortfall to be eliminated. The Auditor General said achieving these targets will be a challenge, though the government's assumptions are "plausible."

The deficit comes as no surprise ahead of the election. Finance Minister Eric Girard had mentioned in his last two budgets that deficits would persist over the coming years. In its response, the Ministry of Finance defended the decision to leave a deficit, arguing it avoided unnecessary cuts and allowed for flexibility if the economic situation improved. The ministry also noted that the deficit is calculated after a payment to the Generations Fund—before that payment, there would have been a budget surplus in 2029–2030.

The tight fiscal picture means significant decisions lie ahead for the incoming government, with limited room for new spending commitments or tax cuts. The Auditor General's emphasis on the challenge of hitting these targets signals that Quebecers should expect either revenue increases or service reductions—or both—over the next four years.