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)

Government	GDP (%)
Federal	46.1
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 average¹	28.8
Adjusted provincial average²	32.1

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 remains committed to reducing long‑term debt and is continuing to make dedicated revenues deposits in the Generations Fund.

Nevertheless, developments in the budgetary situation and the current uncertain economic context call for an adjustment to the debt reduction targets announced in March 2023, as mentioned in the March 2025 budget.

Net debt to GDP must be reduced to 35.5% of GDP by 2032‑2033 and to 32.5% of GDP by 2037‑2038.

Net debt as at March 31 (percentage of GDP)

Net debt as at March 31 (accessible version)

Year	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	37.9
2024	38.0
2025	38.7
2026	40.4
2027	41.5
2028	41.9
2029	41.0
2030	39.8

Generations Fund

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

In 2025‑2026, revenues dedicated to the Generations Fund will stand at $2.2 billion. They will rise to $2.8 billion in 2029‑2030.

As at March 31, 2025, the balance of the Generations Fund will stand at $16.8 billion, which is 7.1% of net debt.

Withdrawals from the Generations Fund to repay borrowings will stand at $2.5 billion in 2025‑2026. They amounted to $4.4 billion in 2024‑2025.

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

Generations Fund(millions of dollars)

	2024‑2025	2025‑2026	2026‑2027	2027‑2028	2028‑2029	2029‑2030
Book value, beginning of year	18 458	16 812	16 489	18 891	21 413	24 061
Dedicated revenues
Water‑power royalties
Hydro‑Québec	736	757	880	892	904	933
Private producers	115	121	124	126	129	131
Subtotal	851	878	1 004	1 018	1 033	1 064
Additional contribution from Hydro‑Québec	650	650	650	650	650	650
Investment income	853	649	748	854	965	1 082
Total dedicated revenues	2 354	2 177	2 402	2 522	2 648	2 796
Deposit from the Territorial Information Fund	400	—	—	—	—	—
Total deposits	2 754	2 177	2 402	2 522	2 648	2 796
Use of the Generations Fund to repay borrowings	–4 400	–2 500	—	—	—	—
Book value, end of year	16 812	16 489	18 891	21 413	24 061	26 857
% of net debt	7.1	6.5	7.0	7.6	8.4	9.3
% of GDP	2.8	2.6	2.9	3.2	3.4	3.7

Québec’s credit ratings

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.

See credit ratings

For more information

To learn more about Québec’s debt and the Generations Fund, see the section The Québec Government’s Debt of the Québec Budget Plan – March 2025.

Québec’s debt and Generations Fund