Quebec to pay $9.5 billion in debt interest this year: think tank


Quebec will pay $9.5 billion in debt interest this year, equivalent to all income taxes paid by 1.5 million Quebecers, says the think tank MEI.

In other words, almost 85% of Montreal’s total population will pay all income taxes just to cover interest on debt.

“The government is no longer paying 1-2% interest on new debt, and that is showing up in the budget,” said Renaud Brossard, senior director of public relations at the MEI. Said On March 21st release. With interest rates rising, Finance Minister Eric Girard should have focused on returning to a balanced budget, he said, MEI.

However, the Quebec government projects a shortfall of $4 billion over 2023-2024. We have no plans to balance the budget until 2027.

Quebecers pay more debt interest than most Canadians, with $2,110 in combined federal and provincial debt. according to Fraser Institute. The only states with higher per capita payments are Newfoundland and Labrador, at $2,727.

Ontario’s per capita debt interest is about $1,800. On provincial debt interest alone, Ontario will spend $14.5 billion this year. according to State Economic Outlook Report.

Overall, the state and federal governments are expected to spend $68.6 billion on interest payments. Said In 2023 Debt Interest Valuation. To put it into perspective, the federal government spends more than annual childcare benefits and employment insurance benefits combined.

Quebec Minister Girard announced on March 21 that the province’s budget includes a 1% income tax cut for each of the two lowest tax brackets. However, MEI said, “Quebec remains the most tax-burdening place in North America this year.” These he two bracket income tax will be 14% and 19%.