As a percentage of GDP, Quebec’s public administrations (provincial, federal, municipal) generally have higher revenues and expenditures than most provinces. That means something.
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This emerges in particular from the “Panorama of public finance in Quebec” by the Research Chair in Taxation and Public Finance (CFFP) at Sherbrooke University, just published by researchers Michaël Robert-Angers, Luc Godbout and Frédérick Hallé-Rochon, Suzie St-Cerny and Julie S. Gosselin.
In terms of revenue, Quebec leads all provinces with the highest consolidated government revenue in the country as a percentage of its GDP. By consolidated revenues we mean personal taxes, corporate taxes, taxes of all kinds, federal transfers, property taxes, various government service revenues, etc.
Thus, in 2021 (the latest year available), our public administrations generated total revenues equal to 34.7% of our GDP. That equates to revenue in the region of $175 billion being pulled out of taxpayers’ pockets.
When comparing them to their respective GDPs, it’s worth noting that we far outperform the Canadian average (27.3%), Ontario (25.7%), British Columbia (25.1%) and Alberta (21.8%).
AND VICE CHAMPION FOR GOVERNMENT EXPENSES
In terms of government spending, Quebec ranks second, accounting for 27.5% of Quebec’s GDP overall, including 25.2% for program spending, 1.7% for debt costs, and 0.7% for the Generations Fund.
With 30.1% of GDP in government spending, we are second only to Prince Edward Island.
In terms of government spending, we are well ahead of the Canadian average (21.3% of GDP) and the prosperous provinces of Ontario (19.1%), British Columbia (20.3%) and Alberta (17.2%).
Another indicator that shows that Quebec is “different” from the other provinces: the distribution of public administration expenditure in the four main categories.
Here is the distribution of public spending in Quebec compared to the provincial weighted average:
– Healthy: 36.6% (37.1%)
– In education: 16.0% (18.2%)
– In social protection: 18.8% (15.1%)
– Other: 28.5% (29.6%)
This places Quebec seventh out of all ten provinces in terms of the proportion of its public spending on healthcare; Ninth among provinces in education spending; First place in social protection spending; and eighth in the Other category.
Now a word about Quebec’s debt. Relative to GDP, we are one of the most indebted provinces, with our net debt reaching 37.4% at the end of fiscal year 2022-23. Only Ontario was ahead of us at a rate of 37.8% of its GDP. Average provincial net debt was significantly lower at 28.7% of GDP.
EXCESS POSSIBLE MORTALITY IN QUEBEC
Important Fact: Quebec tops provinces in healthcare spending related to COVID-19.
Over the three years (2020, 2021, 2022), we spent $2,843 per capita for Quebecers, compared to $1,995 per capita for Canadians, according to the Canadian Institute for Health Information compilation.
Unfortunately, according to Kimberlyn McGrail of the Canadian Medical Association Journal, between March 14, 2020 and October 23, 2021, Quebec recorded the highest number of deaths related to COVID-19 in Canada, at 11,470. That’s 1,666 more than Ontario, which had 6.2 million more people than we do.