ResponsiBle management OF PUBLIC FINANCEs
With the creation of the Generations Fund, Québec has taken another step in restoring order to public finances.
Fund objective: reduce the debt to less than 25% of GDP by 2025 from its current level of 43% of GDP.
To finance the Generations Fund, Québec is relying on water, an abundant and renewable natural resource. Among others:
the water-power royalties paid by Hydro-Québec and private producers;
the payment of part of the earnings from the sale of surplus electricity on export markets.
Current average of the provinces 25.2%
ThE gENERATIONs FUND
pRojection of the total deBt (As A PERCENTAgE OF gDP)
The Caisse de dépôt et placement du Québec will act as trustee of
2005 2010 Source: Ministère des Finances
Income more than of $600 million per year as of 2008-2009.
pRojection of amounts accumulated in the geneRations fund (BILLIONs OF DOLLARs)
Beginning in 2015, the amounts accumulated in the Generations Fund will be sufficient to reduce debt service by more than $500 million per year.
$30 billion will be applied to debt retirement in 2025.
The burden of the debt in the economy will fall to 25%, i.e. the current average of the Canadian provinces.
Source: Ministère des Finances
A BALANCED BUDgET
The budget will remain balanced in 2006-2007 and 2007-2008.
Thanks to responsible and rigorous management of public finances, the government is complying with the Balanced Budget Act:
passed unanimously by the National Assembly in 1996, this legislation stipulates that a deficit cannot be incurred, other than in exceptional circumstances.
The ratio of program spending to GDP should reach 17.6% in 2005-2006 and 17.5% in 2007-2008:
its lowest level in 35 years.
ECONOMIC AND FINANCIAL PROFILE OF QUÉBEC