Quebec's Bachand Cuts Cumulative Budget Deficit Forecast Through 2013-14

Quebec Finance Minister Raymond Bachand boosted his deficit forecast for the current fiscal year as he set aside C$100 million ($99.6 million) more to cover unforeseen spending.

Bachand, who was speaking at a press conference in Quebec City, said the 2010-11 deficit for Canada’s second-most populous province is now projected to be C$4.6 billion, higher than the C$4.5 billion previously estimated. Quebec raised its budget contingency for the year to C$400 million from C$300 million, and also set aside C$300 million for 2011-12 and C$200 million for 2012-13.

“We are staying the course, but we are also increasing provisions out of prudence because of the economic uncertainty that exists in the U.S.,” Bachand said.

Quebec’s 2011-12 deficit will be C$3.2 billion, Bachand said today, compared with a C$2.9 billion projection in March. The 2009-10 deficit is estimated to be C$3.2 billion, C$1.1 billion less than earlier projected.

Bachand said the government now expects gross domestic product in the province to climb by 2.6 percent this calendar year, compared with a March forecast of 2.3 percent. Next year, the government’s forecast calls for growth of 2.2 percent, down from a March prediction of 2.6 percent.

Quebec expects its gross debt, which includes pension plan deficits, to rise to C$197.1 billion by March 2015, from C$163.3 billion this year, Finance Ministry documents show.

To contact the reporters on this story: Alexandre Deslongchamps in Ottawa at; Frederic Tomesco in Montreal at

To contact the editor responsible for this story: David Scanlan at;

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.