MONTREAL – Multiples promises of Dominique Anglade’s Liberal Party will cost nearly $41 billion over five years, which will increase Quebec’s debt by $5 billion. If elected, the party would push back the return to a balanced budget by 7 years.
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It is “absolutely not” an orgy of spending, argues the Liberal leader.
“It’s both fair and responsible,” she says, pointing to inflation, the labor shortage crisis and the climate crisis justifying the spending.
“At the CAQ today, we mortgage the future of our children and we continue to send checks to try to settle crises,” criticizes Dominique Anglade.
In order to finance its tax cuts for the middle class and the creation of its $2,000 allowance for seniors, the PLQ is ready to assume deficits for 7 years, according to the party’s financial framework presented Sunday morning in a hotel in Montreal.
Thus, the Liberal Party’s “Portfolio Plan” will increase state spending by $41 billion, confirmed Mr.me Anglade, with his economic team.
For the deficits, “we are talking about an amount which is not exaggerated either over the next seven years”, pleads Mme England.
His party argues that the current economic cycle requires tough action.
The return to a balanced budget would then be pushed back to 2029-2030, instead of 2027-2028 as planned by the CAQ.
Having the rich pay
Thanks to the fight against tax havens, a new tax for financial institutions, another on unoccupied buildings in Montreal and the increase in taxes for the super-rich earning $300,000 or more, the PLQ estimates that it can recover 12 G $ additional revenue.
“It’s a message of fairness that we send,” said the chef to explain her promise to make the rich pay.
“There are a number of crises that need to be addressed and everyone needs to do their part. Those with more means must also do their part.”
Mme Anglade ensures that there would be no austerity to finance these new measures or revision of state spending.
The PLQ intends to continue the planned payments to the Generations Fund.
Thus, Ms. Anglade’s party will borrow on the markets in order to inject it into this Fund, which provides more returns.
“Not contributing to the Generations Fund is leaving money on the table,” explained the candidate in Marguerite-Bourgeois, Frédéric Beauchemin.
“We don’t want to shovel for the next generation.”
Ultimately, within five years, the deficit will be 5 billion more than what was forecast in the pre-election report.
This is the first training to file its quantified and explained framework, based on this report which was considered by the Auditor General to be “plausible”.
About 40% of the new budget cuts are related to tax and duty cuts, then the other 60% due to new aid measures that are planned for citizens, such as commitments to overcome the labor shortage work.
The average deficit, after payment to the Generations Fund, would be 5 billion per year, or less than 1% of GDP.
The objective of the PLQ is to achieve a debt/GDP ratio of 32% within approximately 8 years, thanks to economic growth. In this way the debt burden would continue to decrease.
With their financial framework, the Liberals “have just disqualified themselves,” commented the outgoing Prime Minister, François Legault, while participating in a militant dinner in the county of Fabre.
According to him, the PLQ is now like Québec solidaire.
It is an “irresponsible” and “spendthrift” party, he says. “It’s not the Liberal Party that we knew, they are using our children’s credit card and it doesn’t make sense.”
-With the collaboration of Marc-André Gagnon, Parliamentary Office
Costs of the 5 main electoral commitments of the PLQ over 5 years
- Middle class tax cut (up to $1,125 per person): $12 billion
- Allowance for seniors ($2,000 for 70 years and over): $10 billion
- Tax deduction for experienced workers (65 years and over): $2.5 billion
- QST exemption on essential products: $1.9 billion
- Free educational projects: $1.5 billion