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Ministère des Finances

Ministère des Finances

Québec’s debt and
Generations Fund

Debt reduction targets

Québec has made notable progress in reducing its debt load in recent decades, although it remains high. Québec is one of the most indebted jurisdictions in Canada.

Net debt of governments in Canada as at March 31, 2024(percentage of GDP)

Net debt of governments in Canada as at March 31, 2024(accessible version)

Province GDP (%)
Federal 45.8
Newfoundland and Labrador 45.3
Québec 38.0
Ontario 36.4
Manitoba 35.2
Nova Scotia 31.1
Prince Edward Island 26.7
New Brunswick 25.1
British Colombia 17.4
Saskatchewan 13.1
Alberta 10.0
Provincial average(1) 28.8

(1) This average is obtained by dividing the sum of provincial debts by the sum of provincial GDP.
Sources: Public accounts, governments’ budget documents and Statistics Canada.

Reducing the debt burden is a priority for the government.

In addition to promoting greater intergenerational fairness, reducing the debt burden contributes positively to economic growth by creating a climate of confidence conducive to private investment and higher productivity.

The Act to reduce the debt and establish the Generations Fund was adopted in 2006. By reducing the debt burden, it aims to ensure long-term financing of the government’s main missions as well as a prosperous tomorrow for future generations.

As announced in the 2023‑2024 budget, the government is now focusing its reporting on net debt, as are Ontario and other provinces.

As at March 31, 2024, net debt stood at 38.0% of GDP. It is expected that this ratio stands at 39.0% of GDP, as at March 31, 2025. The government intends to reduce it to 30% of GDP by 2037‑2038.

The government also aims for the net debt burden to be 33% of GDP by 2032‑2033. This is an intermediate target.

At a time when it is difficult to forecast how the economy will change over the long term, the government has provided an interval for these two targets. These two targets were incorporated in the Act to reduce the debt and establish the Generations Fund in December 2023.

  • Net debt by 2032‑2033 (intermediate target): 33% of GDP (±2.5% of GDP).
  • Net debt by 2037‑2038: 30% of GDP (±2.5% of GDP).

The government intends to achieve these targets by restoring a balanced budget, continuing to make payments to the Generations Fund and implementing measures to accelerate economic growth.

Net debt as at March 31 (percentage of GDP)

Net debt as at March 31 (accessible version)

Year GDP (%)
2017 48.9
2018 45.9
2019 42.9
2020 40.9
2021 43.1
2022 38.8
2023 37.9
2024 38.0
2025 39.0
2026 39.8
2027 39.5
2028 39.1
2029 38.6

Generations Fund

Since 2006, the Generations Fund is an important pillar of the debt reduction strategy.

In 2024‑2025, revenues dedicated to the Generations Fund will stand at $2.2 billion. They will reach $2.6 billion in 2028‑2029 and $4.1 billion in 2037‑2038.

As at March 31, 2025, the balance of the Generations Fund will stand at $16.7 billion, which is 7.1% of net debt.

Withdrawals from the Generations Fund to repay borrowings will stand at $4.4 billion in 2024‑2025. As announced in the 2024‑2025 budget, these withdrawals include an additional deposit of $400 million to the Generations Fund, drawn from a portion of the accumulated surplus of the Territorial Information Fund of the Ministère des Ressources naturelles et des Forêts. Withdrawals will be $2.5 billion in 2025‑2026. They stood at $2.5 billion in 2023‑2024.

Withdrawals serve to reduce the financing program and alleviate debt service.

Generations Fund(millions of dollars)

  2023‑2024 2024‑2025 2025‑2026 2026‑2027 2027‑2028 2028‑2029
Book value, beginning of year 18 911 18 458 16 701 16 395 18 806 21 334
Dedicated revenues            
Water‑power royalties            
   Hydro‑Québec 705 761 777 893 901 895
   Private producers 110 118 122 124 127 129
   Subtotal 815 879 899 1 017 1 028 1 024
Additional contribution from Hydro‑Québec 650 650 650 650 650 650
Investment income 582 714 645 744 850 961
Total dedicated revenues 2 047 2 243 2 194 2 411 2 528 2 635
Deposit from the Territorial Information Fund 400
Total deposits 2 047 2 643 2 194 2 411 2 528 2 635
Use of the Generations Fund to repay borrowings –2 500 –4 400 –2 500
Book value,
end of year
18 458 16 701 16 395 18 806 21 334 23 969
   % of net debt 8.4 7.1 6.6 7.3 8.1 8.9
   % of GDP 3.2 2.8 2.6 2.9 3.2 3.4

Québec’s credit ratings

In 2024, after the 2024‑2025 budget, all the rating agencies that rate Québec have confirmed its credit rating with a stable outlook.

See Credit Ratings

For more information

To learn more about Québecs debt and the Generations Fund, see the section entitled The Québec Government’s Debt of the Update on Québec’s Economic and Financial Situation – Fall 2024.