Ministère des Finances
Ministère des Finances
Ministère des Finances
In this section :
See the Sustainability indicator This link opens a new window.
Sustainability refers to the degree to which the government can meet its existing financial obligations without increasing, in relative terms, the debt or tax burden on the economy. Government sustainability is measured by the following indicators:
This indicator illustrates the extent to which the government finances its current operations through liabilities. A ratio of over 100% indicates that it accumulated a surplus in the past and that the value of the government’s financial and non-financial assets is higher than that of its liabilities. A ratio of less than 100% indicates that the government accumulated a deficit in the past and that the value of its financial and non-financial assets is lower than that of its liabilities. An upward ratio illustrates a favourable trend.
This indicator measures the requisite future revenues to cover past operations. A falling ratio indicates the government’s tendency to reduce its net debt. Conversely, a rising ratio indicates that it will take longer to reduce its net debt.
This indicator illustrates the evolution of the distribution of consolidated government expenditure between portfolios.
This indicator puts the government’s net debt into perspective with its ability to pay, as measured by GDP. A downward trend in this ratio means that government debt is becoming less of a burden on the economy, while an upward trend may lead the government to take measures to reduce the debt burden, such as raising taxes or reducing portfolio expenditures to cover interest costs.
This indicator relates the debt representing accumulated deficits, or the debt not used to finance assets, with the government’s ability to pay, as measured by GDP. A downward trend in this ratio means a reduction in the relative weight of the debt representing accumulated deficits.
This indicator makes it possible to compare the growth of government spending with that of the economy over the years. A decline (increase) in this indicator means that spending is growing less (more) rapidly than the economy. The indicator shows the change in the relative weight of the cost of public services in the economy.
See the Flexibility indicator This link opens a new window.
Flexibility is the extent to which the government can change its debt burden or the tax burden of its citizens to meet its existing financial obligations without compromising its ability to meet its future obligations. Government flexibility is measured by the following indicators:
This indicator illustrates the share of government revenue that must be allocated to debt service. A decline in this ratio over time means that a larger share of revenue can be devoted to other portfolio expenditures.
This indicator shows the extent to which the estimated remaining useful life of tangible assets will enable the government to supply products and services in the future. An increase in this ratio indicates that on average the age of fixed assets is lower, and thus that their remaining useful life is longer. The fixed assets can thus be used for a longer period of time before they need to be replaced.
This indicator shows the proportion of collective wealth that the government must collect in order to fund public services. The government’s own-source revenue consists of income tax and other taxes, user fees and other revenue derived from its enterprises in particular. This revenue includes all of the government’s revenue, apart from transfers received from the federal government. A decline in this ratio over time tends to indicate that more created wealth is directly available to taxpayers, while an increase suggests reduced government flexibility regarding future revenues.
See the Vulnerability indicator This link opens a new window.
Vulnerability is the degree to which the government is dependent on sources of funding outside its control or influence. Government flexibility is measured by the following indicator:
Transfers received from the federal government comprise equalization payments, payments from transfers for health care, and for post-secondary education and other social programs, and amounts transferred under various agreements. This indicator measures the proportion of the Québec government’s revenue that comes from the federal government.