Liberals place emphasis on boosting health, transit
Hospital wait times, Montreal rail project stand out as priorities for government
Quebec Finance Minister Carlos Leitão introduced his third balanced budget plan on Tuesday, promising $7 billion in new tax cuts over six years, including a retroactive cut to the health services tax, and new money for education, health care and transportation. Here are the highlights of what was announced (costs are spread over next five years unless otherwise noted):
OVERALL
A balanced budget with consolidated revenue of $106.3 billion and consolidated expenditures of $103.7 billion in 2017-18
Projected economic growth of 1.7 per cent in 2017, 1.6 per cent in 2018
Debt at 52 per cent of GDP in 2017-18, down from 53.4 per cent in 2015-2016, on track to reach an objective of 45 per cent in 2026
TAXES
Immediate elimination of the health services tax, including a refund of the 2016 contribution (100 per cent for incomes between $18,570 and $134,095 a year, partial for $134,095 to $159,095 a year, none for incomes above that), for a total cost of $725.4 million
Reduction of the health services tax for small and medium-size businesses ($1.1 billion)
Simplification of formula for basic personal amount, giving all taxpayers a cut of $55 a year and raising to $14,890 the amount of income exempt from income tax ($1.4 billion over five years)
Increase in special tax reductions for residents and businesses in remote areas, particularly Îlesde-la-Madeleine
Extension of compensation tax for financial institutions for an additional five years, to March 31, 2024 ($911 million in total additional revenue)
Tax relief of $277 million over six years (including a retroactive year) for the sale of family businesses in the service and construction sectors
Allowing mining companies to deduct costs of public consultations
EDUCATION AND RESEARCH
Total increase in spending of 4.2 per cent for 2017-2018 and $3.4 billion over the next five years, including:
1,500 additional staff for early childhood education, rising to 7,200 within five years ($130 million total)
$1.8 billion increase to preschool, elementary and high schools, including $15 million to support parents in preventing learning disabilities among preschoolers and first-graders
$1.1 billion for post-secondary education
$363 million for enhanced student aid
$290 million more for workforce training
$830 million more for research and innovation
$9.3 million to promote public policy research
HEALTH
$772 million increase in 201718 and $1.182 billion increase in 2018-19, including:
$200 million to reduce hospital wait times
$138 million to support autonomy of seniors
$130 million for CHSLDs $58 million to support people with autism spectrum disorder
TRANSPORTATION
A dedication of $1.3 billion in funding for Montreal’s REM electric train project
An unspecified earmark in the infrastructure plan for extension of the métro’s Blue Line
$56 million to draw up plans for a Quebec-Lévis bus rapid transit line
$333 million to public transit bodies, including $10 million for regional public transit and $15 million for accessible transportation
$399 million to support the creation of the Autorité régionale de transport métropolitain, which replaces the Agence métropolitane de transport
Extending the Roulez vert program offering rebates for purchase of electric vehicles, and modifying eligibility criteria ($70 million over two years)
BUSINESSES AND INDUSTRIES
$440 million to encourage entrepreneurship, including $50 million to support co-operative buyout of businesses
$179.4 million to support labour market integration of immigrants, including $13.5 million for attraction of international students and $103.5 for francization of immigrants.
$8 million to subsidize renovations to make buildings more accessible to people with disabilities
$45.5 million for the forestry sector
$159.2 million for agri-food, including $14 million to reduce the use of pesticides
$9.2 million to support the alcoholic beverage industry
$123.3 million for the tourism industry
$54 million for the Maritime Strategy
$45 million for the Plan Nord
REGIONS
Support for special status of Montreal and Quebec City, with funding of $150 million and $62 million, respectively
A new fund, gradually increasing to $100 million a year in 2021-22, to support economic development in regions ($310 million over first five years)
HOUSING
$255 million to build 3,000 new social, community and affordable housing units, bringing the total to 149,084
ENVIRONMENT
$231 million for the environment, wildlife and renewable resources
A temporary five-year refundable tax credit for upgrades to septic systems ($65.5 million)
Extension of RénoVert tax credit one year to March 31, 2018 ($167 million)
JUSTICE
$54 million to the Justice Department, including accelerated compensation for crime victims
$5.9 million to extend the action plan to fight homophobia and transphobia another five years
Additional measures to ensure legal compliance by sharing economy services like Uber and Airbnb
MEDIA AND CULTURE
$36 million for the print news industry, including $12 million to reduce their obligations to the RecycleMédias recycling program
Increases in tax credits for film and TV production ($19.6 million total)
$37 million to museums and the Quebec Cultural Heritage Fund
$5 million for the Quebec music industry
$2 million a year more to TéléQuébec
ABORIGINALS
$135 million for economic, social and community development
$60 million for the Aboriginal Social Development Action Plan
OTHER FUNDING
$27.1 million for gender equality, with details to be announced
Additional staffing (unspecified number or cost) at Autorité des marchés financiers and Revenu Québec for prosecutions to prevent more cases from being lost due to recent Supreme Court decision on maximum length of trials
OTHER MEASURES
Allow distillers to sell alcoholic beverages at the factory