Quebec budget expected to include record deficit, measures to address tariff threats

Quebec Minister of Finance Eric Girard displays his 2025-2026 budget plan during a press conference the day before the government's budget is tabled in Quebec City on March 24, 2025. THE CANADIAN PRESS/Karoline Boucher

QUÉBEC — Quebec’s finance minister is set to table a budget today with a focus on shoring up businesses and workers as U.S. tariff threats continue to sow economic turmoil.

Eric Girard has confirmed the budget for the coming fiscal year will include a projected deficit of more than $11 billion, surpassing the record set last year.

He told reporters Monday that the province is in a difficult economic position due to U.S. President Donald Trump’s threat of across-the-board tariffs, which come as Canadian federal leaders are preoccupied with an election campaign.

However, he said Quebec’s finances remain “under control,” and said the province can still avoid a recession.

Premier François Legault has said the budget will include funding for the province’s investment arm — Investissement Québec — as well as newly announced loan programs for businesses threatened by U.S. tariffs.

The premier also said he has asked Girard to include funding to accelerate major job-creating infrastructure projects, including for schools, hospitals and transportation.

Girard says the budget, which he has titled “For a Strong Quebec,” will be a chance to present the province’s plan to support Quebec in uncertain times.

“We are taking steps to support the economy. And we also need more substantial provisions, because we are in a period of great uncertainty,” he said Monday in Quebec City.

He described the budget as “complex,” adding that “we have made the choice to focus on the economy while protecting public services.”

It comes after the finance minister presented an economic update in November that painted a rosy picture of the province’s economic progress, despite a projected $11-billion deficit for the 2024-25 fiscal year.

Girard has previously told reporters the government’s goal is to balance the books by the 2029-30 fiscal year, and he confirmed Monday that he will present a plan to balance the books within five years.

Innovation will be a central theme of the budget, with the minister saying Monday it will include $15 million over the next three years in research funding for businesses.

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Morgan Lowrie, The Canadian Press

This report by The Canadian Press was first published March 25, 2025.

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U.S. President Donald Trump’s reciprocal tariffs on trading partners are set to take effect on April 2, a day he has proclaimed as “Liberation Day” for American trade. CTV News will have extensive coverage across all platforms:

• CTVNews.ca will have in-depth coverage, real-time updates, and expert analysis on what the tariffs will mean for Canadians.
• CP24.com will report on any developments out of Queen’s Park and what the tariffs means for the people of the GTHA.
• BNNBloomberg.ca will explain what this means for the business community, investors, and the market.