Quebec’s finance minister presented an economic update on Tuesday that offered modest savings to taxpayers, as he painted an optimistic picture of the province’s finances heading into an election year.
Eric Girard’s update includes decreases to payroll deductions for the provincial pension plan and parental insurance. The reductions, along with adjustments to how personal income taxes and social insurance benefits are indexed, are expected to represent an average gain of $182 per taxpayer in the 2026-27 fiscal year, he said.
The savings to taxpayers may be modest, but they will come “extremely quickly,” he told reporters in Quebec City. “January 2026, it’s very soon. So it will arrive at an opportune moment.”
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Beginning on Jan. 1, the government will cut the contribution that workers pay into the Québec Pension Plan by 0.2 per cent and the rate they pay for parental insurance by 13 per cent. “It’s because the pension plans are in good health . . . that we can reduce contributions,” Girard said. “We’re giving back to Quebecers what belongs to them.”
Taxes and social assistance benefits will be indexed at a rate of 2.05 per cent as of Jan. 1, which will raise the base annual rate for a person receiving social assistance to $9,600 from $9,408. While indexation is virtually automatic, Girard’s office noted that prior to 2004 previous governments at times didn’t apply the full adjustment.
The economic update also includes more than $400 million over five years to support economic development in regions facing challenges, especially in relation to U.S. tariffs. More than $290 million of that will go to the agriculture, forest and fishing industries, where businesses will receive a temporary payroll tax holiday totalling $255 million.
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Opposition parties were quick to criticize the budget for not offering enough help to Quebecers who need it.
Liberal Leader Pablo Rodriguez described the deficit as “historic” and said it showed poor management by a government that is “possibly the worst government in Quebec history.” He told reporters there “isn’t much of interest for Quebecers” in the budget, adding that the aid for forestry workers is insufficient.
Ruba Ghazal, the parliamentary leader of Québec solidaire, said the financial respite for Quebecers only amounted to about $11 per month, or the amount of a “Big Mac trio.”
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