Quebec’s government announced on Friday that the province’s projected budget deficit for the 2025‑26 fiscal year has been revised to $7.2 billion, a reduction from the earlier estimate of $13.6 billion. The adjustment appears in a new financial report released by the provincial finance ministry, which shows the shortfall to be roughly half of the amount previously forecast.
The report, covering the upcoming fiscal year that runs from April 2025 to March 2026, provides the latest figures used by the government to plan expenditures and revenue measures. The revised deficit figure of $7.2 billion reflects the most recent assumptions about economic activity, tax collections and spending commitments, according to the data presented in the document.
Earlier projections had placed the deficit at $13.6 billion, a number that had been cited in budget discussions throughout 2024. The new estimate cuts that amount by $6.4 billion, indicating a significant improvement in the province’s fiscal outlook. No further breakdown of the components driving the change was included in the brief released by the ministry.
The finance ministry’s update arrives as Quebec continues to monitor its fiscal position amid broader economic trends affecting Canadian provinces. While the revised figure lowers the anticipated gap between revenues and expenditures, the government has not disclosed whether any policy adjustments will be made in response to the change.
Officials said the revised projection will be used in upcoming budgetary planning and will inform decisions on spending priorities and possible tax measures for the 2025‑26 period. The province will continue to track actual performance against the forecast as the fiscal year progresses.
The revised deficit estimate is expected to be incorporated into the province’s official budget documents that will be presented later in the year, providing a clearer picture of Quebec’s financial outlook for the next fiscal cycle.