Quebec’s public sector debt growing rapidly: MEI

Thanks to recurring deficits and infrastructure spending, Quebec’s public sector debt is set to surpass a record $280 billion, according to MEI’s Quebec Debt Clock.

Quebec’s debt is “growing rapidly, even though the province has not been in recession for seven years and government revenues keep rising,” says Youri Chassin, research director at the MEI.

With the province’s public debt going from $221.9 billion to $280 billion in less than seven years, that means each Quebecer is saddled with a debt of $33,629, or $69,274 per taxpayer who pays income taxes.

Further, during fiscal year 2016-2017, debt servicing will cost the province $10.4 billion, says Chassin.

The upside is debt servicing has not increased much in recent years, he notes, saying, “The only reason the debt service burden is not exploding is the current low level of interest rates. But everyone knows that extremely low rates can’t last forever.”

The Quebec Debt Clock shows the growth of the public sector debt in real time. Public sector debt includes the government’s gross debt, as well as the debt of the health and social services and education networks, municipalities, and other public corporations for which the government is ultimately responsible.

Staff

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