Despite Balanced Budget Act, Quebec Public Sector Debt to Increase $28 million a Day
Today the Montreal Economic Institute (MEI) released their annual viewpoint on the debt of the Quebec government. Despite a provincial fiscal deficit of $3.3 billion, the provincial debt actually increased by $13.7 billion in 2011-12. From the MEI press release:
This is because certain components of the debt are not accounted for within the framework of the budget. Infrastructure investments and municipalities’ debts, which are ultimately guaranteed by the provincial government, are two examples.
“As the Auditor General pointed out, many of the government’s financial obligations totalling in the billions of dollars are removed from the attention of the general public. By looking instead at the total amount of indebtedness, as the MEI’s Debt Clock does, Quebecers can have a much more complete picture of their collective debt,” explains Jasmin Guénette, Vice President of the MEI.