Quebec will have to tighten its belt for several years to comply with provincial legislation that requires a balanced budget, the province’s auditor general said on Monday.
In a new analysis, the auditor general, Christine Roy, projected the government is facing a multi-billion dollar deficit that will require cuts of at least $2 billion, starting next year, and up to $5 billion for the following year.
The projections come less than two weeks before Quebec Premier Christine Fréchette is expected to call a general election.
The numbers show that the political parties don’t have “much leeway” for new spending promises, Roy said.
“It is up to the political parties to decide if they want to implement additional measures, but at that point, they must explain how they will finance them,” Roy said at a news conference.
Roy’s report is based on an analysis of the latest numbers released by the provincial Finance Department. Her office is required to produce this report, before an election.
Quebec’s Balanced Budget Act requires the government to eliminate the deficit by 2029—30.
In its response included in the report, the provincial Finance Department defended its projected deficits, saying it wanted to avoid making unnecessary cuts. It noted that revenues could improve, depending on the economic situation.
The department also said Quebec would actually have a budgetary surplus in 2029—30 if it didn’t have to pay into a special fund established to eliminate public debt.
In his last two budgets, Finance Minister Eric Girard said that Quebec would address its deficit in the coming fiscal years.
Opposition parties reacted to the auditor general’s new report with fresh criticism of the Fréchette government’s spending.
Liberal finance critic Frédéric Beauchemin accused her of making a series of pre-election announcements despite the deficit.
“She was aware of the state of public finances,” he said at a news conference.
Parti Québécois efficiency critic, Pascal Paradis, also accuses the premier of overspending.
“Christine Fréchette kept both hands in the electoral cookie jar, promising billions left and right, when this is the reality of Quebec’s financial situation,” said Paradis in a press conference.
Girard, the finance minister, said the premier had more room to spend money because Quebec’s finances were in better shape than expected.
Roy also highlighted how trade negotiations between Canada and the United States could have an impact on Quebec’s finances.
The Carney government is trying to avoid new 50 per cent tariffs that the Trump administration threatened to impose on Wednesday.
“All of this will depend on what happens this week; we’re in a state of uncertainty,” Roy noted.
“If the new tariffs materialize this week, each political party will have to adjust its financial framework and take the situation into account,” she added.
This report by The Canadian Press was first published Aug. 17, 2026.
By Stéphane Rolland | Copyright 2026, The Canadian Press. All rights reserved.
