Ministère des Finances
Ministère des Finances
Ministère des Finances
Québec has made notable progress in reducing its debt load in recent decades, even though it remains high. Québec is one of Canada’s most indebted jurisdictions.
1GDP‑weighted average.
2GDP‑weighted average excluding the least indebted province, Alberta, and the most indebted province, Newfoundland and Labrador.
Sources: Governments’ public accounts and Statistics Canada.
The government is maintaining its objective of reducing the debt burden in the long term. Thanks, in particular, to a return to a balanced budget by 2029‑2030 and continued deposits in the Generations Fund, the net debt burden is expected to resume a downward trajectory.
In the March 2025 budget, an adjustment to the debt reduction targets was announced due to changes in the fiscal situation and the economic context since the March 2023 budget.
The government aims to reduce net debt to GDP to 35.5% by 2032‑2033 and to 32.5% by 2037‑2038.
| Year | % of GDP |
|---|---|
| 2013 | 53.9 |
| 2014 | 53.4 |
| 2015 | 52.6 |
| 2016 | 51.1 |
| 2017 | 48.9 |
| 2018 | 45.9 |
| 2019 | 42.9 |
| 2020 | 40.9 |
| 2021 | 43.1 |
| 2022 | 38.8 |
| 2023 | 37.5 |
| 2024 | 37.8 |
| 2025 | 38.3 |
| 2026 | 39.7 |
| 2027 | 40.8 |
| 2028 | 41.3 |
| 2029 | 40.4 |
| 2030 | 39.3 |
Since 2006, the Generations Fund is an important pillar of the debt reduction strategy.
In 2025‑2026 and 2026‑2027, revenues dedicated to the Generations Fund will amount to $2.5 billion and $2.4 billion respectively. They will rise to $2.8 billion in 2029‑2030.
The fall 2025 update provides for an additional deposit in the Generations Fund in 2026‑2027 that will correspond to the cumulative surplus of the Electrification and Climate Change Fund as at March 31, 2026, estimated at $1.8 billion. Deposits in the Generations Fund will therefore total $4.2 billion in 2026‑2027.
The balance of the Generations Fund, which will stand at $16.8 billion as at March 31, 2026, is expected to reach $26.5 billion as at March 31, 2030, representing 9.2% of net debt.
Withdrawals from the Generations Fund to repay borrowings stood at $4.4 billion in 2024‑2025 and $2.5 billion in 2025‑2026. A new withdrawal of $2.5 billion is planned in 2026‑2027.
Withdrawals serve to reduce the financing program and alleviate debt service.
| 2024‑2025 | 2025‑2026 | 2026‑2027 | 2027‑2028 | 2028‑2029 | 2029‑2030 | |
|---|---|---|---|---|---|---|
| Book value, beginning of year | 18 458 | 16 855 | 16 816 | 18 528 | 21 038 | 23 676 |
| Dedicated revenues | ||||||
| Water‑power royalties | ||||||
| Hydro‑Québec | 753 | 750 | 859 | 894 | 908 | 936 |
| Private producers | 118 | 124 | 126 | 128 | 131 | 134 |
| Subtotal | 871 | 874 | 985 | 1 022 | 1 039 | 1 070 |
| Additional contribution from Hydro‑Québec | 650 | 650 | 650 | 650 | 650 | 650 |
| Investment income | 876 | 937 | 744 | 838 | 949 | 1 065 |
| Total dedicated revenues | 2 397 | 2 461 | 2 379 | 2 510 | 2 638 | 2 785 |
| Deposit from the Electrification and Climate Change Fund | — | — | 1 833 | — | — | — |
| Deposit from the Territorial Information Fund | 400 | — | — | — | — | — |
| Total deposits | 2 797 | 2 461 | 4 212 | 2 510 | 2 638 | 2 785 |
| Use of the Generations Fund to repay borrowings | –4 400 | –2 500 | –2 500 | — | — | — |
| Book value, end of year |
16 855 | 16 816 | 18 528 | 21 038 | 23 676 | 26 461 |
| % of net debt | 7.1 | 6.6 | 6.9 | 7.5 | 8.3 | 9.2 |
| % of GDP | 2.7 | 2.6 | 2.8 | 3.1 | 3.4 | 3.6 |
A credit rating helps measure the ability of a borrower, such as the Québec government, to pay interest on its debt and repay the principal at maturity.
Québec’s credit rating is evaluated by five credit rating agencies.
To learn more about Québec’s debt and the Generations Fund, see the section The Québec Government’s Debt of the Update on Québec’s Economic and Financial Situation – Fall 2025.