Quebec’s upcoming government will encounter a significant challenge in managing its finances, as indicated by the province’s auditor general, Christine Roy. Roy estimates that the next administration will be required to implement substantial spending reductions totaling billions of dollars to aim for a balanced budget.

The auditor general’s report outlines the necessity for a $2 billion cut in 2027-2028, followed by a $3 billion reduction in 2028-2029. Additionally, an anticipated $1.85 billion shortfall could contribute to a total of $4.85 billion in cuts for 2028-2029. By legislative mandate, the subsequent government must eliminate the province’s deficit by 2029-30.

These projections were disclosed in Roy’s pre-election report, designed to enhance transparency regarding the economic and financial state of the provinces. Roy cautioned that services could potentially be impacted in the coming years. She emphasized that certain activities and programs would face reduced funding, posing challenges for their beneficiaries.

The projected deficit is largely attributed to Quebec’s below-average economic growth forecast, influenced by factors such as stagnant population growth, declining domestic demand, and the repercussions of U.S. tariffs and global conflicts. The next election in Quebec is slated for October 5, with the campaigning phase expected to commence in the upcoming week.

In a separate statement made in July, Quebec Finance Minister Eric Girard expressed that the province’s economy was performing better than anticipated despite global uncertainties. Girard reported an operational deficit of $5.5 billion for the previous fiscal year, ending in March, equivalent to 0.9% of the gross domestic product.