(Source: Canada Newswire)
QUEBEC, Oct. 27 /CNW Telbec/ - "Despite the pressure exerted on
public finances by the recession, the government is maintaining its
target of returning to balanced budgets by 2013-2014. To that end, I
am today releasing a document that describes the economic outlook
for 2009-2013 and identifies the main issues Quebec will face to
return to balanced budgets," the Minister of Finance, Raymond
Bachand, said while presenting the government's annual economic and
financial update.
Five-year financial framework
The update to the government's budgetary forecasts brings the
expected deficits for the period from 2009-2010 to 2013-2014 to
$13.2 billion after implementation of the Plan to return to balanced
budgets, i.e. $1.7 billion more than in the 2009-2010 Budget.
Accordingly, the additional measures that need to be identified
to meet the targets of the Plan to return to balanced budgets amount
to $5.1 billion by 2013-2014, an increase of $1.3 billion compared
to what was forecast last March.
Spending control
For 2008-2009 and 2009-2010, the average annual growth in program
spending will be 4.7%, which is comparable to the rise during the
period from 2003-2004 to 2008-2009, while the average increase in
the other provinces was 7.6% for the same period, with 8.5% in
Ontario.
In the course of implementing the Plan to return to balanced
budgets, slower revenue growth will require that growth in overall
spending be reduced. Accordingly, as announced in the last budget,
annual growth in program spending must be decreased to 3.2% as of
2010-2011, a rate compatible with economic growth and taxpayers'
ability to pay.
"Our commitment regarding spending growth is firm. We will do
everything to slow the current rate of growth. My colleague the
Chair of the Conseil du tresor and Minister responsible for
Government Administration will present the government with a series
of measures to achieve our objective," Minister Bachand said.
Tax evasion
In addition, the government announced today that it is
intensifying its efforts against tax evasion and tax avoidance.
These efforts are part of the measures identified by the government
in its Plan to return to balanced budgets.
Accordingly, the government is announcing that the appropriations
of Revenu Quebec will be increased by $20 million in 2010-2011.
Revenu Quebec will also be able to hire 250 more full-time
employees. These measures should help increase the government's
revenues by $200 million in 2010-2011. "My colleague the Minister of
Revenue will soon announce other measures to counter tax evasion in
the tobacco and restaurant sectors," Minister Bachand specified.
Consultations
The update to the government's budgetary forecasts brings the
annual effort needed in 2013-2014 to return to balanced budgets to
$5.1 billion. The identification of additional measures is needed to
meet the requirements stipulated in Bill 40, passed by the National
Assembly last September 18.
To start the discussion, the government is releasing the document
A Return to Balanced Budgets by 2013-2014. This marks the beginning
of the pre-budget consultations that will be broadened this year.
Accordingly, the public will be consulted not only on the means to
take to return to balanced budgets by 2013-2014 but also on the
broad economic policies Quebec should focus on, as it emerges from
recession, to develop the vast potential of its economy and thus
create the wealth necessary to maintain the quality of public
services, on the basis of the values all Quebecers hold dear.
"To provide input during this consultation, I am also announcing
today the creation of an advisory committee that I will co-chair
with Robert Gagne, head of the Centre sur la productivite et la
prosperite and professor at the Institut d'economie appliquee of HEC
Montreal. In the coming weeks, we will be advising you of the other
eminent experts from the world of economics who will take part in
the consultations and the committee's work. These people will enrich
our analyses. Quebec will have to make difficult choices in the
coming years, but these choices must be made publicly and in
complete transparency," Minister Bachand concluded.
Update on the Plan to Support Jobs
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and Prepare for Economic Recovery
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- Government intervention to support jobs and prepare for
economic
recovery
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- Since the fall of 2008, the government has acted a number of
times to
support the economy. In the 2009-2010 Budget, it announced the
implementation of the Plan to support jobs and prepare for
economic
recovery.
