Additional Investments Have Been Announced Totaling More Than $22B Over the Next Five Years
The GrantMatch team has compiled a helpful summary of the latest provincial budget details released by the Quebec government on March 22, 2022. The biggest announcement in the Budget is $500 to be paid 6.4 million Quebecers with incomes of less than $100,000 to help mitigate the impact of high inflation. This support will be paid automatically with filing of tax returns at a cost of $3.2B. The biggest announcement in the Budget is $500 to be paid 6.4 million Quebecers with incomes of less than $100,000 to help mitigate the impact of high inflation. This support will be paid automatically with filing of tax returns at a cost of $3.2B
High Level Summary of the Budget
- $634M for affordable housing – including acceleration of 3,500 units and building of 1,000 additional units.
- $8.9B to restore health and socials services system
- $2.2B to stimulate economic growth (details to follow)
- $2.8B invested in education including $267M by 2026-27 to enhance quality of school buildings
- $1.3B for environment and sustainability initiatives including greening the economy (details to follow)
- $2.2B to strengthen communication action including $888M new community action plan
- Balanced budget by 2027-28 with a current deficit projected of $6.5B by end of 2022-23.
Specific Program & Expenditure Initiatives
- $100M investment by 2026-27 to building 1,000 units under affordable housing program which provides financial supports to community and private sector to build affordable housing.
Stimulating Economic Growth
- $1.3B to implement new Quebec Research and Innovation Strategy (2022-27). The Strategy aims to consolidate programs, support tech entrepreneurship, and stimulate investment. This includes $600M to support creation of innovative businesses through $500M for private equity funds and $100M for the Impulsion PME Program.
- $7.5M over three years to continue research partnership program on sustainable development in the mining sector and support growth mining site redevelopment and restoration
- $53.5M to support specific research foundations
- $60M over two years to assist businesses to accelerate the shift to digital operations
- $30M for new program to strengthen cybersecurity (details to be announced)
- The C3i investment and innovation tax credit temporary enhancement announced in 2021 to be extended to goods acquired before January 1, 2024 (10% to 20% for Montreal and Quebec City; 20% to 40% for areas with low economic vitality; other areas 15% to 30%)
- $57.5M over three years for a future entrepreneurship plan to provide entrepreneurs with business skills and to assist with start-up, growth, and survival
- Continued support for pandemic business supports through the Concerted Temporary Action Program for Business (PACTE) and Assistance for Businesses in Regions on Maximum Alert (AWRAM)
- $11M over three years to increase exports and promote Quebec’s assets
- $255M to foster development of regional air services and extend emergency assistance
- $114.2M to invest in regional land transportation infrastructure projects
- $38.8M over five years to provide support to regional economic development including development of battery sector, assist local economic planning and accelerate completion of certain industrial projects
- $627M over five years to grow the bio-food sector including: $527M to assist in food processing financing, support for fisheries and aquaculture and research and innovation projects; $15M to mitigate labour shortages
- $50M over two years to increase La Financiere Agricole du Quebec’s Growth Investment Program to assist farmers with subsidies to improve productivity and sustainability
- Additional $75M to foster innovation for forestry innovations projects in Programme Innovation Bois and $15M over three years to support modernization of forest industry supply chain
- $12M over three years to support timber harvesting in high-risk spruce budworm regions
- $108.4 M to provide additional support to the tourism sector including accommodation tax refund program, $6M to support under the tourism support of PACTE -Tourisme program (details to be announced) and $15M to extend PADAT program for loans for hotel renovations
- $102M over five years to support festivals and tourist events and assist local tourism associations
- $72.1M to extend measures to support the cultural sector including support for performance of Quebec shows, audiovisual capacity and assist cultural organizations.
Environmental Support and Sustainability Initiatives
- Additional $1B from cap-and-trade system to address climate change – implementation plan to be announced. Of the $7.6B in forecast 2022-2027 expenditures -$5.8B to be allocated to reducing GHG emissions ($3.5B for transportation; $1.3B for industrial; $758M for building sector)
- Extension of Roulez vert rebates for purchase of electric vehicles
- $100M over four years for green hydrogen and bioenergy strategy to support production distribution (details to be announced)
- New tax credits for production of biofuels and pyrolysis oil
- $143.3M to support sustainable practices including: $29.0 million to enhance the 2020-2030 Sustainable Agriculture Plan; $5.8 million to support farmers in littoral zones; $27.7 million to reduce air and noise pollution; $52.8 million to improve wastewater management through tax credits and other measures; $10.0 million to continue improving Québec’s resilience to disasters; and $18.0 million to promote eco-design and the reduction of residual materials.