Budget 2022-2023 – Budget Plan

1 Budget 2022-2023 Budget PLANBUDGET 2022-2023 YOUR GOVERNMENTBUDGET PLANM arch 2022 Budget 2022-2023 YOUR GOVERNMENTBUDGET PLANM arch 2022 Budget 2022-2023 Budget PlanLegal deposit March 22, 2022 Biblioth que et Archives nationales du Qu becISBN 978-2-550-91391-7 (Print)ISBN 978-2-550-91392-4 (PDF) Gouvernement du Qu bec, 2022X Budget plan Section A Overview Section B Coping with the Rising Cost of Living Section C Restoring the Health Care System Section D Investing in Education and Higher Education Section E Stimulating Economic Growth Section F Continuing Efforts Relating to the Environment Section G Strengthening Community Action and Supporting Communities Section H Qu bec s Economy Section I Qu bec s Financial Situation Section J The Qu bec Government s Debt Section A A OVERVIEW Summary.

2 Government .. Coping with the rising cost of living .. Restoring the health care system .. Investing in education and higher education .. Stimulating economic growth .. Continuing efforts relating to the environment .. Strengthening community action and supporting communities .. bec s economic Qu bec is performing exceptionally Increase in economic activity sustained by domestic demand in 2022 and 2023 .. bec s financial situation .. The strong economic recovery brings additional revenue .. A significant reduction in the structural deficit .. Financial framework .. Stable and predictable investment for key government priorities .. Increased investment in public infrastructure.

3 The government is continuing to reduce the debt burden gradually .. APPENDIX 1: Qu bec s economic outlook 2020 to 2026 .. APPENDIX 2: 2022 pre-election report .. A SECTION SUMMARY Qu bec has been grappling with the consequences of the COVID-19 pandemic for two years now. In spite of the strict public health measures imposed, Quebecers have demonstrated great perseverance. Qu bec s economy posted an impressive recovery in 2021, showing more sustained growth than elsewhere in Canada. Real GDP grew by after shrinking in 2020. Despite a slow start to the year due to the emergence of the Omicron variant, the economy will continue to grow in 2022 and onwards. Qu bec s economy should see growth of in 2022 and then return to in 2023.

4 While this economic outlook allows us to see the future with optimism, there is still a possibility that the epidemiological situation may change. Qu bec must continue to deal with the underlying repercussions of the public health situation, in particular, the disruptions to supply chains, as well as the uncertainty related to Russia s invasion of Ukraine. Inflationary pressures will continue into the first half of 2022, with the war in Ukraine already driving up energy prices. The high inflation rate affects all Qu bec households, especially those with lower incomes. That is why, to help Quebecers cope with the rising cost of living, a one-time payment of $500 will be made to adults with an income of $100 000 or This will help million Quebecers to be better protected against the consequences of inflation.

5 In addition, the government has maintained sound management of public finances since The structural deficit has been reduced to less than $3 billion, even though barely a year ago it was assessed at $ billion. Fiscal balance is still expected to be restored by 2027-2028. 1 This amount will be paid to individuals who will be filing a 2021 tax return. See Section B for additional details. 2 Unless otherwise indicated, this document is based on the budgetary and economic data available as at March 4, 2022. The budgetary data presented for 2021-2022 are preliminary results. The data for 2022-2023 to 2026-2027 are forecasts and those for subsequent years are projections. Budget 2022-2023 Budget plan The effects of the Balanced Budget Act were temporarily suspended in order to gradually reduce the deficit without hindering sustainable recovery and growth of the economy.

6 The gross debt objective set out in the Act to reduce the debt and establish the Generations Fund will be achieved, in spite of the increase in the debt caused by the pandemic. The objective for accumulated deficits will not be met, however. The government intends to propose changes to the Act to reduce the debt and establish the Generations Fund in Budget 2023-2024. A new debt reduction objective covering the next 10 or 15 years will then be set. These significant results have been achieved while accelerating the investments in health, education, the economy and the environment. No services to the population or main missions were cut back on to achieve this. Initiatives totalling $22 billion Backed by a strong financial framework and solid financial forecasts, the Qu bec Budget plan March 2022 announces a set of initiatives for supporting growth.

7 Including its action to cope with the cost of living, Your Government plans to invest $22 billion by 2026-2027. The public health crisis highlighted the challenges that must be addressed to make the health care system more accessible, humane and effective. The government is now in the process of transforming this system to adapt it to the post-pandemic reality. At the same time, the government is pursuing its action plan to enhance care and services for the public, especially for seniors, informal and family caregivers and youth in difficulty. Investments of $ billion are planned to restore the health care system. Aware of the fact that the labour shortage is hampering economic growth and the prosperity of Quebecers, the government is making education a priority.

8 To do so, it continues to invest to support educational success and school perseverance and to improve access to and graduation from higher education, in particular, to encourage individuals to qualify or requalify for entering the labour market. Investments of $ billion are planned in education and higher education. In the fall of 2021, the government released the economic vision for Qu bec, which aims to increase its prosperity so that its level of wealth is comparable to that of Ontario, in particular. In Budget 2022-2023 , actions are taken to increase the productivity of Qu bec s economy, strengthen the integration of immigrants into the workforce, support regional economic development, and support the recovery and promote Qu bec s culture and the cultural sector.

9 Investments of $ billion are planned to stimulate economic growth. A SECTION The government is also continuing efforts relating to the environment. The 2022-2027 implementation plan for the 2030 plan for a Green Economy, which investment will be increased by $ billion, will be unveiled shortly. With this addition, $ billion will be devoted to actions to reduce GHG emissions and fight climate change. In Budget 2022-2023 , the government provides for new investment of $357 million to reclaim contaminated areas and rehabilitate land, stimulate the energy transition and support sustainable practices. Lastly, the government is committed to the well-being of all Quebecers and is taking action to meet the needs of communities.

10 It also recognizes the essential role of community organizations, which represent a large driver of action among the population given their capacity to reach, in particular, the most vulnerable clienteles. Investments of $ billion are planned to strengthen community action and support communities. TABLE Financial impact of Budget 2022-2023 initiatives (millions of dollars) 2021-2022- 2022-2023 - 2023-2024- 2024-2025- 2025-2026- 2026-2027- Total Ref. section Coping with the rising cost of living 3 245 296 89 83 68 45 3 826 B Restoring the health care system 1 299 1 566 1 834 1 996 2 203 8 899 C Investing in education and higher education 522 545 578 578 581 2 804 D Stimulating economic growth 73 1 099 1 134 959 475 444 4 184 E Continuing efforts relating to the environment(1) 3 63 84 87 70 50 357 F Strengthening community action and supporting communities 97 481 342 389 441 451 2 200 G TOTAL 3 418 3 759 3 760 3 931 3 628 3 773 22 269 Note: Totals may not add due to rounding.