Quebec economic update: $2.1B in new spending, end of tax credit for some older workers

Quebec’s finance minister has tabled an economic update with $2.1 billion in new spending over five years amid what Eric Girard describes as a stronger-than-expected recovery from last year’s economic slowdown.

Girard painted a positive picture of the province’s finances Thursday despite a projected $11-billion deficit that remains unchanged from March’s budget.

The new spending he announced in Quebec City includes more than $250 million for the forestry sector and $1.2 billion for community development, which includes public transit.

Girard told reporters the government is still reviewing its spending as it moves toward its goal of balancing the budget by the 2029-30 fiscal year.

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As part of that review, the government decided that Quebecers between the ages of 60 and 64 will no longer be eligible for a tax credit that was introduced in 2012 to encourage older workers to stay in the workforce.

Girard said today the average age of retirement in Quebec has risen to 64.7 years in 2023 from just over 61 years in 2011.