one way or another, Jean Charest's Liberals are certain to make enemies. United in general council this weekend, activists have put forward a series of proposals to replenish the coffers: Recovery of tolls on highways, the imposition of tuition at college, higher rates of Hydro-Quebec , new tax on alcohol and bottled water. As I forget?
The budget introduced in March by the former Minister Monique Jerome-Forget was a deficit of 3.9 billion. The first quarter figures, released last week, already indicate a deficit of 3 billion just for this quarter. It must obviously be careful about making bold projections from a single quarter. Still: it is obvious that the goal of 3.9 billion will be missed. Among specialists, are already talking about 5 to 6 billion. This hole in the government's financial balance will affect subsequent years. Already Mrs. Jérôme-Forget expected to earn 11.6 billion deficits until 2013. The new minister Raymond Bachand has much to do to avoid break down this figure.
Under these conditions, the 400 delegates to the General Council have sought to replenish the coffers. And now, at the conclusion of work on Sunday, Premier Jean Charest has put a big flat on this. Before embarking on increases in taxes and tariffs, he said, the government should start by looking at how it could better control costs, to "tighten our belts before emptying the pockets of citizens.
Well said, but it hides a challenge. If the Government decides to raise rates and some fees, he
gets back to consumers and taxpayers. If he wants to reduce its expenditure, it triggers the wrath of the all-powerful unions. Yet, sooner or later the Government will have no choice in the Quebec public finances deteriorate seriously.
The biggest problem is debt. Given its ability to pay, Quebec is by far the most indebted region in Canada. Net debt represents the Quebec government $ 16 336 for each citizen, including babies, against $ 13 320 on average in the Maritimes, $ 11 552 in Ontario and $ 1667 in the western provinces. In addition, each Quebec citizen must bear its share of federal debt is $ 15 469. These figures provide a good indication of the level of government debt, but do not tell everything. Thus, we have just seen that the per capita debt in Quebec is much higher than Ontario. However, Ontarians, even taking into account recent troubles in the automotive industry, are richer than Quebecers. So for every Ontarian, the burden of public debt is much lighter than it appears at first sight.
To better reflect this reality, the debt is expressed as a percentage of gross domestic product (GDP), that is to say the size of the economy. At the federal net public debt reached 515 billion, or 32% of GDP. For other regions, here's what happens: the western provinces, debt of 17 billion or 3%, Ontario 149 billion or 25%, Atlantic Canada, 31 billion or 32%, Quebec, 127 billion or 42%.
Here is another point of view, which gives chilling: Quebecers, who constitute 23% of Canada's population, account for 40% of the total debts of provincial governments. This imbalance is so important that it is high time to sound the alarm. Certainly, all things considered, the budget deficit of Quebec will be lower this year than in most other provinces. Slim consolation prize. Precisely because it is already much more heavily indebted than others, Quebec must do everything possible to avoid adding.
But how did this happen? It's an old story. Already in the early 90s, just before the outbreak of the crisis in public finances, Quebec was heavily indebted. In 1991, net debt of the Quebec government was 37.6 billion, against 38.4 billion for Ontario, but much richer and more populous.Subsequently, it was attacked with limited success in cancer deficit, although the finance ministers have often managed to achieve a zero deficit at the price of accounting tricks, also criticized by auditors General. However, except for a symbolic payment made in time by the Minister Pauline Marois, and the initiative of Minister Michel Audet create a fund of generations (which has been entrusted to the Caisse de depot, and then hit hard by the financial crisis), it has always failed to seriously address the debt. In this sense, the Parti Quebecois and the Liberal Party can hardly blame each other for the disaster. They are both responsible.
The budget introduced in March by the former Minister Monique Jerome-Forget was a deficit of 3.9 billion. The first quarter figures, released last week, already indicate a deficit of 3 billion just for this quarter. It must obviously be careful about making bold projections from a single quarter. Still: it is obvious that the goal of 3.9 billion will be missed. Among specialists, are already talking about 5 to 6 billion. This hole in the government's financial balance will affect subsequent years. Already Mrs. Jérôme-Forget expected to earn 11.6 billion deficits until 2013. The new minister Raymond Bachand has much to do to avoid break down this figure.
Under these conditions, the 400 delegates to the General Council have sought to replenish the coffers. And now, at the conclusion of work on Sunday, Premier Jean Charest has put a big flat on this. Before embarking on increases in taxes and tariffs, he said, the government should start by looking at how it could better control costs, to "tighten our belts before emptying the pockets of citizens.
Well said, but it hides a challenge. If the Government decides to raise rates and some fees, he
gets back to consumers and taxpayers. If he wants to reduce its expenditure, it triggers the wrath of the all-powerful unions. Yet, sooner or later the Government will have no choice in the Quebec public finances deteriorate seriously.
The biggest problem is debt. Given its ability to pay, Quebec is by far the most indebted region in Canada. Net debt represents the Quebec government $ 16 336 for each citizen, including babies, against $ 13 320 on average in the Maritimes, $ 11 552 in Ontario and $ 1667 in the western provinces. In addition, each Quebec citizen must bear its share of federal debt is $ 15 469. These figures provide a good indication of the level of government debt, but do not tell everything. Thus, we have just seen that the per capita debt in Quebec is much higher than Ontario. However, Ontarians, even taking into account recent troubles in the automotive industry, are richer than Quebecers. So for every Ontarian, the burden of public debt is much lighter than it appears at first sight.
To better reflect this reality, the debt is expressed as a percentage of gross domestic product (GDP), that is to say the size of the economy. At the federal net public debt reached 515 billion, or 32% of GDP. For other regions, here's what happens: the western provinces, debt of 17 billion or 3%, Ontario 149 billion or 25%, Atlantic Canada, 31 billion or 32%, Quebec, 127 billion or 42%.
Here is another point of view, which gives chilling: Quebecers, who constitute 23% of Canada's population, account for 40% of the total debts of provincial governments. This imbalance is so important that it is high time to sound the alarm. Certainly, all things considered, the budget deficit of Quebec will be lower this year than in most other provinces. Slim consolation prize. Precisely because it is already much more heavily indebted than others, Quebec must do everything possible to avoid adding.
But how did this happen? It's an old story. Already in the early 90s, just before the outbreak of the crisis in public finances, Quebec was heavily indebted. In 1991, net debt of the Quebec government was 37.6 billion, against 38.4 billion for Ontario, but much richer and more populous.Subsequently, it was attacked with limited success in cancer deficit, although the finance ministers have often managed to achieve a zero deficit at the price of accounting tricks, also criticized by auditors General. However, except for a symbolic payment made in time by the Minister Pauline Marois, and the initiative of Minister Michel Audet create a fund of generations (which has been entrusted to the Caisse de depot, and then hit hard by the financial crisis), it has always failed to seriously address the debt. In this sense, the Parti Quebecois and the Liberal Party can hardly blame each other for the disaster. They are both responsible.
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