Quebec Premier Jean Charest said he is more or less satisfied with the federal budget presented by Finance Minister Jim Flaherty on Thursday.

The province had been concerned Ottawa would slash transfer payments to the provinces in an effort to contain deficit spending.

Finance Minister Raymond Bachand, left, and Premier Jean Charest react to the federal budget in Quebec City on Thursday. (CBC)"The federal government has given reassurances on that today that equalization payments would not be affected,” Charest said. "In that respect, we are satisfied with the response they gave today."

The province is expected to receive $15.2 billion in transfer payments, including $8.5 billion in equalization payments — $200 million more than last year, said Quebec Finance Minister Raymond Bachand.

Quebec receives $15 billion a year in equalization payments from Ottawa, which represents 24 per cent of the province's budget.

But, Charest said he is disappointed Ottawa will not hand over the $2 billion the province has requested to compensate the province for the harmonization of the federal and provincial sales tax — similar to an agreement that was recently reached with Ontario.

The issue is a "question of being treated equitably," said Charest.

The premier said he remains concerned the federal government may trim transfer payments over the next few years as it seeks to eliminate its deficit by 2015.

The chairman of Montreal’s executive committee said municipalities are also generally pleased with the budget.

The budget ensures cities will continue to get a 100 per cent rebate on the GST, said Claude Dauphin, who is also vice-president of the Canadian Federation of Municipalities.

Ottawa has also confirmed municipalities will continue to receive a portion of the excise tax on gasoline, Dauphin said.

Commitment to Quebec City armoury

In Quebec City, officials welcomed a promise to rebuild the Voltigeurs armoury, which was destroyed by a spectacular fire in April 2008.

The budget did not specify a monetary amount for the reconstruction of the armoury. It did however contain a firm commitment to rebuilding the historic building and pledged $1 million for planning.A fire in April 2008 destroyed 80 per cent of Quebec City's armoury. (Clement Allard/Canadian Press)

Since the fire, there has been debate over whether the armoury should be rebuilt on the same site.

Former members of the Voltigeurs regiment, the oldest francophone military regiment in Canada, are among the most vocal proponents of the idea.

This budget brings that idea closer to reality, said the vice-president of the Voltigeurs Foundation, Yvon Lachance.

With files from The Canadian Press