Federal budget cuts Quebec, says finance minister

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Quebec Finance Minister Eric Girard said Wednesday that the federal budget presented on Tuesday will not be affected, and that while it is full of overspending, it still manages to cut Quebec in many areas.

Speaking to reporters, Girard said he found positive elements in the budget proposed by his federal counterpart Chrystia Freeland, especially in the area of ​​investments in artificial intelligence.

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But he added that the budget's extravagance was a “mistake” in the current climate of hope for lower interest rates.

Despite those costs, Quebec has not received enough funding for public transit or asylum seekers, Girard said, adding that the amounts announced to address the asylum problem are not enough “to make a difference.”

The Trudeau government has said it aims to restore economic equality to Canadians who are part of Generations Y and Z in its $535 billion budget. The budget includes $11 billion in new spending this year and another $53 billion for next year. five years.

Ottawa will pay for some of these new costs thanks to better-than-expected economic growth, but also through changes to the capital gains rule, which is expected to bring in an additional $19 billion over the next five years. The federal government announced that two-thirds of capital gains above $250,000 would be subject to taxes, up from the current 50 percent.

Girard said he would check if Quebec would comply with the latter measure.

“We want to check the calculations,” he said. “Is there an economic opportunity for us here?” Could there be a lower capital gains (threshold) jurisdiction? We have to check it carefully.”

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