(Adds details throughout on budget measures)
TORONTO, March 21 (Reuters) - Canada's Quebec province
on Tuesday forecast its budget deficit would narrow less than
previously expected in the upcoming fiscal year as it cuts taxes
and economic growth slows.
The mostly French-speaking province announced initiatives
totaling C$24 billion ($17.5 billion) over the next five years,
including a tax cut that will benefit 4.6 million people.
"We are introducing one of the largest tax cuts in Quebec’s
history," Quebec Minister of Finance Eric Girard said in a
statement. "This is a strong commitment from our government,
which we are proud to honour."
Quebec projected a C$4 billion budget deficit for
2023-24, compared to a C$2.3 billion deficit that was seen in a
fiscal update in December. The fiscal year begins on April 1.
The projected deficit includes a C$1.5 billion provision for
economic risks and a deposit of C$2.4 billion to the Generations
Fund, which is a fund dedicated to repaying the province's debt.
Quebec's net debt-to-GDP ratio is forecast to tick up to
37.7% at the end of the 2023-24 fiscal year from 37.4% in
2022-23 but to then gradually decline to 35.8% in 2027-28 when
the budget is expected to be in balance.
The province, which is Canada's second-most populous
province behind Ontario, expects economic growth to slow to 0.6%
in the 2023 calendar year from 2.8% in 2022.
It sees a C$5 billion deficit in 2022-23, compared with the
C$5.2 billion deficit projected in December.
($1 = 1.3710 Canadian dollars)
(Reporting by Fergal Smith; Editing by Lisa Shumaker and
Lincoln Feast.)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.