Quebec posts $2.5 Billion surplus - No tax break for you
The provincial government may soon have to invest in a larger piggy bank.
According to preliminary data, Quebec posted a $2.49 billion surplus for the fiscal year ending March 31, ten times what had been forecast in the provincial budget on March 28.
Finance Minister Carlos Leitao said the final numbers will be announced this fall.
If you were hoping all this extra money will come with a tax break for you, you will be disappointed. Leitao said all of the money will be allocated to its stabilization reserve, which will grow to about $4.7 billion.
Leitao said should there ever be an emergency the government would be able to dip into the reserve without altering its financial course. The Finance Minister used the historic flooding from this past spring as an example, as well as additional support for the forest industry.
"This surplus confirms the solidity of our financial framework," Leitao said on a conference call. "Sound public finances are an essential condition to economic prosperity."
How did the province go from a projected $250 million surplus to ten times as much?
Leitao said additional money came in through corporate taxes, Crown corporations posted high revenues and government generated revenue growth.