Quebec’s 2024 Budget Summary

Quebec's 2024 Budget provides an overview over the various services and plans the province has over 2024 and into 2025. across the areas of health, education, industry, and the overall economy.

Focus on health and education

  • Real GDP growth should remain modest in 2024 (0.6%) before accelerating in 2025 (1.6%).
  • State revenues reach $150.3 billion in 2024-2025, with growth of 2.4%. This will rise to 4.2% in 2025-2026.
  • State expenditure reaches $157.6 billion in 2024-2025, with growth of 4.4%. This will rise to 2.9% in 2025-2026.
  • Income payments to the Generations Fund will total $2.2 billion in 2024-2025 and 2025-2026.
  • As at March 31, 2024, the government’s net debt will stand at $221.1 billion, or 39.0% of GDP.
  • In 2024-2025, $18.6 billion will be invested in infrastructure under the Plan québécois des infrastructures 2024-2034, which calls for investments totalling $153 billion over 10 years.
  • In 2024, nominal GDP is expected to reach $589.9 billion, up 4.0% on 2023.
  • In 2024, real GDP is expected to grow by 0.6%. Household consumption (+0.8%) and exports (+2.0%) will be the main growth drivers.

Health $3.7B over 5 years

Nearly $1.8 billion is earmarked for healthcare spending this year. This includes $1.1 billion to ensure the maintenance and quality of care and services for the elderly, as well as $738 million to consolidate social services for the young and vulnerable.

Economics $443 million over 5 years

The government is continuing to invest in strategic sectors that will help boost the productivity of the Quebec economy, and is continuing to take action on the key determinants of economic growth, notably digital and technological transformation. In this regard, initiatives totaling nearly $443 million over five years are planned to:

  • Set up industrial laboratories in innovation zones;
  • Ensure the growth of Quebec’s aerospace sector;
  • Continue the development of the aluminum sector;
  • Promote the adoption of new technologies and research;
  • Support entrepreneurship;
  • Recapitalize the Capital ressources naturelles et énergie fund.

These measures will support the development of new aerospace technologies and enhance the competitiveness of companies in the sector, modernize aluminum companies and increase their exports, continue to accelerate the government’s digital transformation and support emerging technologies.

Setting up industrial laboratories in innovation zones

Innovation zones aim to position Québec globally in strategic sectors and contribute to its prosperity. To foster their development, the government plans to equip certain innovation zones with industrial laboratories to accelerate the valorization and transfer of innovations.

The government has earmarked $125.0 million over five years to set up industrial laboratories.

Ensuring the growth of Quebec's aerospace sector

To support this industry, which accounts for a significant share of Quebec exports, and maximize the spin-offs of new investment projects, the government has earmarked $74.5 million over five years.

Further development of the aluminum sector

  • To further develop the aluminum sector, the government is providing $31.0 million over three years. These sums will make it possible to accelerate the shift to 4.0, which involves integrating information technologies and robotization into companies;
  • Modernize companies in the sector and increase their exports;
  • Accelerate innovation and research, and capitalize on Quebec’s green aluminum.

Promoting the adoption of new technologies and research

  • Against a backdrop of labor shortages, productivity gains offer the greatest potential for improving living standards. To achieve these gains, both business and government must accelerate their technological shift.
  • To foster the adoption of new technologies and research, the government is planning, as part of the 2024-2025 budget, initiatives totaling $203.6 million over five years aimed at:
    • Continuing to accelerate the government’s digital transformation;
    • Support emerging technologies;
    • Modernize property taxation to encourage robotization;
    • Facilitate the fulfillment of the Institut de la statistique du Québec’s mandates.

Supporting emerging technologies

To support the integration of emerging technologies in the workplace and maintain Québec’s position in these fields, the government is providing $15.0 million over three years to carry out multidisciplinary work bringing together two distinct fields of expertise to foster collaboration between research sectors and technology transfer; finance corporate innovation projects that contribute to the development of Quebec’s ecosystem for these technologies.

Modernize property taxes to encourage robotization

  • To support robotization and maintain the competitiveness of Quebec’s tax system, the government plans to modernize the Municipal Taxation Act.
  • Currently, the Act does not explicitly provide for the treatment of certain robots and robotized handling equipment.
  • The current situation could have considerable tax consequences, at a time when robotization opportunities and investment choices are multiplying for businesses.

Reviewing certain business tax incentives

  • A number of business tax incentives will be reviewed to ensure their effectiveness and to better align them with the evolution of the labor market. This revision will reduce the cost of business tax assistance by approximately $1.0 billion over five years, while maintaining a competitive level of government support. The government plans to:
    • Improve the fairness and impact of tax credits supporting jobs in the information technology (IT) sector; enhance support for Quebec film and television production;
    •  Abolish the tax credit for businesses promoting the retention of experienced workers, which has not had the expected impact.

Regional development $889M over 5 years

  • $889 million to contribute to regional prosperity
  • Support Quebec’s forestry sector;
  • Support regional mobility and dynamism;
  • Promote the development of the bio-food sector;
  • Continue to revitalize the tourism sector;
  • Strengthen partnerships with First Nations.
  • Contributing to regional prosperity Open/Close

Technology and research $203M over 5 years

To foster the adoption of new technologies and research, the government is planning, as part of the 2024-2025 budget, initiatives totaling $203.6 million over five years aimed at:

  • Continue to accelerate the government’s digital transformation;
  • Support emerging technologies;
  • Modernize property taxation to encourage robotization;
  • Facilitate the fulfillment of the mandates of the Institut de la statistique mandates.

 

Continuing to accelerate the government’s digital transformation, the government is announcing that it will continue to invest $188.6 million over five years to accelerate the pace of the government’s digital transformation.

Support emerging technologies

To support the integration of emerging technologies in business and maintain Quebec’s positioning in these fields, the government is earmarking $15.0 million over three years to :

  • Carry out multidisciplinary work bringing together two distinct fields of ;
  • To promote collaboration between research sectors and technology transfer and technology transfer;
  • Finance corporate innovation projects contributing to the development of the ecosystem for these technologies in Quebec.

Promoting the development of the bio-food sector $107.5 million over 5 years

To foster the development of the bio-food sector, the government is planning, as part of the 2024-2025 budget, initiatives totaling $107.5 million over five years to:

  • Support sustainable agricultural investments;
  • Create an investment fund to acquire land for young farmers;
  • Supporting sustainable agricultural investments $116 million over 5 years
  • In order to support the agricultural sector and contribute to food self-sufficiency, the 2024-2025 budget, the government has earmarked $116.0 million over five years:
    • 50.0 million for the creation of an investment fund for the acquisition of land for young farmers;
    • 50.0 million to support sustainable agricultural investments investments;
    • 10.0 million to continue support for AgrÉcoles;
    • 6.0 million to add value to surplus food and improve young people’s culinary skills.

 

In addition, an additional $264.0 million has been earmarked to finance the the Farm Property Tax Credit Program to take account of the rapid and significant the rapid and significant increase in farmland values, thereby ensuring competitive tax treatment for Quebec farmers.

These measures in this budget bring additional support for the agricultural sector to agricultural sector to $380.0 million over five years.

Environment

  • 9.3 billion over 5 years to implement the Plan for a Green Economy (PEV) 2030;
  • Gradual reduction in discounts offered under the Roulez Vert program as of January 1, 2025.

Conclusion

In conclusion, we experienced record demographic growth in 2023 (202,500 people, +2.3%).

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