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An update that raises questions

by magictr
June 20, 2020
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Une mise à jour qui soulève des questions

Photo: Getty Images
The economic update presented by Quebec city on Friday has prompted reactions ranging from optimism to caution.

The economic update presented by Quebec city on Friday has prompted reactions ranging from optimism to caution, some organisations welcoming the margins of manoeuvre are always available, while others would have appreciated more details on support targeted for recovery.

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The trade union side, there was a question on the continued payment of 2.6 billion in the generations Fund by noting that the sum could have been devoted to the restart and to public services.

The fiscal situation revealed by the minister of Finance, which describes an economic contraction of 6.5% this year, a deficit never seen 14.9 billion and a return to balance over five years — does not provide perspectives on the post-march 2021, has lamented his side the team of economists of the Movement Desjardins. “There is no doubt that improved economic conditions will allow a reduction in the budget deficit from 2021, but to what point ?” she wrote. And since the stabilization reserve has been liquidated, the margin provided for by the Law on the budget balance will be more narrow.

The Quebec Manufacturers and Exporters, who work in a sector accounting for 14 % of the economy, would have loved to see new measures aimed specifically at their members. The grouping calls in particular for direct assistance to the automation and more credit for research and development. In addition, ” with the extension announced Delivery canadian emergency, new incentives will be needed to facilitate the return to work “, because recruiting is difficult.

“Limit the risk “

The government has done well to tap into the stabilization reserve and put aside $ 4 billion for a second wave, have underlined in a joint statement, the FTQ, the CSN, the CSQ, and the CSD. It is well that Quebec take ” the time it takes to return to balance “, the president of the FTQ; and Daniel Boyer, however, has stated that ” the government will be the appointment to improve the conditions and wages of workers in the public sector “.

Quebec has recently offered a 5% increase in wages over three years, as well as sectoral and other bonuses. In the document Friday, it was mentioned that because of the “exceptional” circumstances, ” the government’s ability to maintain the proposal could evolve rapidly “.

The financial health that existed before the pandemic have had the effect of “limiting the risk of slipping” of the public finances for the future, argued the board of trade of metropolitan Montreal, according to which the return to equilibrium over a five-year goal “realistic” that will be no tax increases, and taxes. This last point was also mentioned by the canadian Federation of independent business, which represents SMES. They will still need help and should be at the centre of the priorities of the economic plan, she said.

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