The provincial budget focuses on debt reduction, with an income tax reduction for workers and small to medium sized businesses.

Quebec Budget 2006-07 Highlights

  • Province forecasts a balanced budget this year.

  • Total spending to grow by 3.9 per cent to $55.8 billion for 2006-07.

  • Health care spending to grow by $1.3 billion to $22.1 billion. This is the province's biggest expense.

  • The provincial debt is expected to hit $118.2 billion by March 31, 2006

  • Government aims to cuts debt to less than 25 per cent of gross domestic product by 2025, mainly through royalties on water.

  • A $288-million reduction in income tax through an increase in the deduction for workers from $500 to $1,000.

  • A cut in the tax rate for small and medium sized business to 8 per cent from 8.5 per cent.

  • Education to get an extra $660 million, including $100 million for students with learning disabilities or social maladjustments.

  • $110 million over three years will go into a new youth strategy.

  • $1.5 billion over three years will go to public transit infrastructure and equipment.

  • A refund of up to $1,000 of the Quebec sales tax on the purchase of hybrid fuel vehicles.