2025-2026 Quebec Budget

The budget protects health services (3% increase) and education services (2.2% increase).

For a more resilient, efficient, and innovative economy. Real GDP growth is expected to remain modest in 2025 (1.1%) and accelerate slightly in 2026 (1.4%).

According to the Quebec Ministry of Finance, government revenues for 2025-2026 are estimated at $120.6 billion, representing a 3.7% increase from the previous year. For 2026-2027, revenues are expected to reach $125.0 billion, a growth of 3.6% from 2025-2026.

Growth planning

Government expenditures in 2025-2026 and their growth: Total expenditures for 2025-2026 are estimated at $125.0 billion, a 3.6% increase from the previous year.
Expenditure growth in 2026-2027: Total expenditures are expected to reach $129.5 billion, a 3.6% increase from 2025-2026.
Payments to the Generations Fund: $4.6 billion in 2025-2026 and $5.0 billion in 2026-2027.
Net debt as of March 31, 2025: Estimated at $236.6 billion, or 39.0% of GDP.
Infrastructure investments in 2025-2026 under the 2024-2034 Quebec Infrastructure Plan: $142.5 billion over 10 years, with approximately $14.3 billion planned for 2025-2026.
Nominal GDP in 2025: Expected to reach $625.0 billion, a 3.8% increase over 2024.
Growth in real GDP, household consumption, and exports in 2025: Real GDP is expected to grow by 1.3%, household spending by 1.5%, and exports by 1.1%.

Trade tensions

In a climate of economic uncertainty driven by global trade tensions, the Quebec government acts as an economic stabilizer by:

Supporting struggling businesses in the short term.
Strengthening the economy through infrastructure and interprovincial cooperation.
Focusing long-term on innovation and investment to enhance competitiveness.

Boosting infrastructure investments:

QIP 2025-2035: Raised to $164 billion (up 7% or $11 billion).
Hydro-Québec: $135-160 billion investment by 2035 (clean energy plan).
Call for a new federal infrastructure plan.

Stimulating Quebec's economy:

Under Budget 2025-2026, $5.4 billion over five years, including:

$4.1 billion to support and stimulate the economy: transitional aid for companies affected by U.S. tariffs, investment support, market diversification, and promotion of Quebec products.
$604.1 million to increase innovation capacity: renewed tax support, modernization of public services, strategic sector innovation, and SME support.
$759 million to support regional economic contributions: boosting regional economies, critical and strategic minerals, forest sector, tourism, and biofood development.

New Innovation Tax Regime:

CRIC implementation (R&D, innovation, commercialization credit).
Administrative simplification: merges 8 current tax measures.
Additional support: $271.5 million over 5 years.
Goal: improve productivity and business competitiveness.
Overall tax reform: $2.97 billion over 5 years.
Optimization: $604.1M targeting high-value IT and strategic resources.
Simplification: $1.14B (tax rate standardization, flow-through shares).
Modernization: $481.5M (phase-out of outdated tax measures). – Public service funding: $747.7M (health fund reform, etc.).

Hydro-Québec: $135-160B in clean energy investments (2024-2035).

Strategic sector innovation support: $194M over 5 years.

Includes AI, life sciences, quantum tech, microelectronics, sustainable finance, with major projects such as Technum Québec, Mila, and life sciences strategy renewal.

Digital Government Transformation Acceleration:

Automation of state processes: $73.8M over 5 years.
Tech governance reform: $6M over 3 years under the Ministry of Cybersecurity and Digital Affairs.
Shared tech solutions: $15M over 2 years.
Digital connectivity: $74.1M over 3 years (200 cell towers, improved rural coverage).
Media digital transformation support: $7.4M over 3 years.

Specific 2025 measures for the biofood sector:

Sustainable Agriculture Plan (PAD) 2020-2030: $20M in 2025-26 ($100M over 5 years).
New Biofood Policy 2025-2035: $16.1M in 2025-26 ($60.3M over 5 years, over $1B including existing resources).
Sustainable Growth Investment Program: $2M in 2025-26 ($42M over 5 years).

Green Economy Plan 2030:

$10.2B from 2025 to 2030.
Goals: 37.5% GHG reduction (vs. 1990), low-carbon transition, climate resilience.

Roulez vert program (rebates for EVs) relaunched April 1, 2025:

$4,000 for new EVs, $2,000 for used, phased out by January 1, 2027.

Climate adaptation: $95.7M over 5 years.

2025 breakdown: $11.8M for disaster resilience, $4.4M for public dam safety, $1.0M for cyber/tech resilience.

Sustainable development and biodiversity: $332M over 5 years.

2025-26: $6.6M for environment/biodiversity, $5M for waste management, $3.9M for Indigenous wildlife co-management.

Long-term objective:

Continue closing the economic gap with Ontario and the rest of Canada.
Life quality gap with Ontario: 11.2% in 2024 to 9.9% in 2026.
With rest of Canada: from 14.7% to 13.7%.