Although inflation continues to affect portfolios and interest rates continue to rise, Quebec has no intention of providing additional financial support to Quebec families, Minister Eric Girard confirms.
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• Also read: The Bank of Canada is raising interest rates
“The answer is no,” confirmed Treasury Secretary Eric Girard.
“The reason we offered help last year was because the tax system was indexed at 2.6% and inflation hit 6.5%. There the tax system is indexed by 6.5% in 2023 and we expect 3.5%. So there will be no additional help.”
In its most recent budget, the government fulfilled its electoral commitment to cut taxes for 4.6 million Quebec taxpayers beginning in the 2023 tax year.
Citizens earning $30,000 per year will benefit from a $108 reduction in their tax burden. A sum that will reach $814 for the wealthiest with annual incomes of $100,000 or more.
In November 2022, the Legault government also paid checks ranging from $400 to $600 to counter inflation.
- Listen to the interview with Fabien Major, Wealth Management Advisor on The Richard Martineau Show via QUB radio :
tariff increase
This morning, the Bank of Canada announced a quarter point hike in its key interest rate, from 4.50% to 4.75%.
“It is certain that a rate hike will affect anyone with debt, be it a mortgage or working capital. And that will dampen demand, weaken the labor market and dampen wage increases,” the finance minister argued.
“Essentially, the bank is confirming what we knew. That said, the first quarter in Canada was much stronger than expected and the job market continues to impress.”
According to the minister, the concern of the financial sector is the level of service prices and their impact on wages. “As the labor market tightens, wages in Canada and Quebec remain high, putting pressure on the so-called fundamental inflation index excluding food and energy. Food and energy are declining.”
Recession: 50/50
Again, the minister estimates that there is a 50% chance of sliding into a recession.
“It’s still the same, the weakness forecast… The slowdown is concentrated in the second, third and fourth quarters of 2023. The forecast for these three quarters is around 0.0%. This means that the probability that the value is above 0% is just as great as below 0%. The probability is always 50%. What is certain is that we are delaying the start of the recession further and further,” he explained.
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