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:
As at March 31, 2016, the gross debt should stand at $207 709 million, equivalent to 55.0% of GDP. The government’s objective is to reduce the ratio of gross debt to GDP to 45% as at March 31, 2026.
As at March 31, 2016, the debt representing accumulated deficits should stand at $119 730 million, equivalent to 31.7% of GDP. The government’s objective is to reduce the ratio of debt representing accumulated deficits to GDP to 17% as at March 31, 2026.
To achieve these debt reduction objectives, the government established the Generations Fund in 2006. The amounts paid into the Fund, that come notably from the water-power royalties paid by Hydro-Québec and private hydro-electricity producers, will be used solely to repay the debt.
The revenues from the following sources are also dedicated to the Generations Fund:
As at March 31, 2016, the book value of the Generations Fund should stand at $8 477 million.
The Generations Fund should reach $23.0 billion as at March 31, 2021.
|Book value as at March 31, 2015||6 938|
|Dedicated revenues in 2015-2016|
|Indexation of the price of heritage electricity||98|
|Specific tax on alcoholic beverages||100|
|Total dedicated revenues||1 431|
|Deposit from the accumulated surplus of the Commission des normes du travail||108|
|Total deposits||1 539|
|Book value as at March 31, 2016||8 477|