Budget 2021-2022

Growth factors of the gross debt

During the year, the gross debt increases for the following reasons:

• The budgetary deficit, if any. A budgetary surplus reduces gross debt.
• Government investments in fixed assets (e.g. roads).
• Government investments in its enterprises. These investments are made through advances, cash contributions or by allowing the government enterprises to keep part of their earnings to finance their own investments.
• Changes in some of the government’s other asset and liability items (e.g. accounts payable and accounts receivable).

Over the past five years, the economy’s strong performance and Québec’s sounder public finances have helped gradually reduce the debt as a proportion of GDP. Thus, the gross debt burden stood at 43.2% of GDP as at March 31, 2020. Because of the major repercussions of the public health crisis on Québec’s economic and financial situation, the gross debt will climb back up to 49.5% of GDP as at March 31, 2021.

For their part, deposits in the Generations Fund will lead to a reduction in the gross debt.