Québec’s 2025–2026 budget arrives amid global economic uncertainty and shifting trade dynamics, particularly with the U.S. In response, the province is investing in innovation, healthcare, education, and regional development, while aiming to return to a balanced budget by 2029–2030.
Economic Growth: Québec’s real GDP is projected to grow by 1.1% in 2025 and 1.4% in 2026, as trade barriers and geopolitical risks weigh on business confidence and exports.
Deficit: The province anticipates a deficit of $13.6 billion in 2025–2026, up from a projected $10.6 billion in 2024–2025.
Debt: Net debt is expected to stand at 38.7% of GDP as of March 31, 2025. While this is lower than pre-pandemic levels, debt is projected to rise until 2027–2028 before gradually declining.
The province has increased its long-term infrastructure plan by $11 billion, for a total of $164 billion over 10 years. This investment will prioritize:
Health care infrastructure
Education and higher education facilities
Public transportation and mobility
To help Québec businesses adapt and grow amid new trade realities, the government is investing $4.1 billion over five years to:
Provide transitional assistance to businesses affected by U.S. tariffs
Support private sector investment projects
Encourage market diversification
Help consumers more easily identify Québec-made products
Over five years, Québec will allocate $604.1 million to stimulate innovation and drive commercialization:
Introduction of the CRIC (Credit for Research, Innovation, and Commercialization), a simplified refundable tax credit:
20% tax credit for eligible expenditures over $1 million
Some projects may qualify for a 30% credit
Investments in strategic sectors such as life sciences and clean tech
Support for SMBs with high growth potential
Continued modernization of public services
To ensure that all parts of the province contribute to long-term prosperity, Québec is investing $759 million in regional initiatives over five years:
Developing Québec’s critical and strategic minerals industry
Supporting forestry sector innovation
Strengthening the tourism sector, including festivals and events
Advancing the bio-food sector with the new 2025–2035 policy, backed by over $1 billion
Despite a challenging global economic environment, Québec is forging ahead with a bold, forward-looking budget emphasizing resilience, innovation, and regional opportunity. While the deficit is set to rise in the short term, the government remains committed to fiscal responsibility and long-term growth.
To learn more or access the full budget document, visit: quebec.ca/en-budget