The Québec government has set debt reduction objectives that have been included in the Act to reduce the debt and establish the Generations Fund. For fiscal 2025-2026:
Given the substantial increase in the debt in 2020‑2021, arising from the significant deterioration in Québec's financial situation related to the public health crisis and support for the economy, these targets will be hard to achieve.
More light will be shed on the situation of the economy and public finances in the coming months. On the basis of this information, the government will examine whether there is a need to review the Act to reduce the debt and establish the Generations Fund, particularly with regard to the achievement of the targets set for 2025‑2026.
Reducing the debt burden remains a priority for the government. Québec is one of the most indebted Canadian provinces and it is not shielded from an eventual increase in interest rates.
To achieve these debt reduction objectives, the government established the Generations Fund in 2006. The sums accumulated in the fund are dedicated solely to repaying the debt. The main revenue sources dedicated to the Generations Fund are as follows:
In 2020-2021, deposits of dedicated revenues in the Generations Fund will amount to $2.7 billion.
As at March 31, 2021, the book value of the Generations Fund will stand at $11.6 billion.
Click here to find out more about the Generations Fund.
Book value as at March 31, 2020 | 8 899 |
---|---|
Dedicated revenues in 2020-2021 | |
Water-power royalties | |
Hydro-Québec | 720 |
Private producers | 99 |
Subtotal | 819 |
Indexation of the price of heritage electricity | 377 |
Additional contribution from Hydro-Québec | 215 |
Mining revenues | 244 |
Specific tax on alcoholic beverages | 500 |
Unclaimed property | 25 |
Investment income | 473 |
Total dedicated revenue | 2 653 |
Book value as at March 31, 2021 | 11 552 |