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, 2014, the gross debt stood at $197 098 million, equivalent to 54.3% 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, 2014, the debt representing accumulated deficits stood at $119 889 million, equivalent to 33.0% 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 reduce the debt, the government has the Generations Fund that was created 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.
As at March 31, 2014, the book value of the Generations Fund stood at $5 659 million.
|Book value as at March 31, 2013||5 238|
|Dedicated revenues in 2013‑2014|
|Total of dedicated revenues||1 121|
|Deposit from Territorial Information Fund||300|
|Total deposits||1 421|
|Use of the Generations Fund
to repay maturing borrowings
|Book value as at March 31, 2014||5 659|
The revenues from the following sources are also dedicated to the Generations Fund:
In addition, as of 2017–2018, the fiscal outlook will make it possible to generate surpluses, half of which will be used to reduce the debt and the other half to ease the tax burden of Quebecers, by giving priority to the gradual elimination of the health contribution.
The Generations Fund should reach $16.8 billion as at March 31, 2019.