PQ financial framework: crisis profiteers and GAFAM will take out the checkbook

PQ financial framework: crisis profiteers and GAFAM will pull out the checkbook

UPGRADE DAY

A Parti Québécois government would seek budget surpluses from next year and the following year thanks in part to taxes on “crisis profiteers” and others for GAFAM.  

In five years, however, the party, which presented its financial framework on Tuesday, foresees the return of a deficit mainly due to the “major” shift in home care for the elderly.

“It's an executive who doesn't hesitate to make choices for the future,” justified chef Paul St-Pierre Plamondon during his visit to the Palais des congrès de Montréal.

Surprisingly, the expenses to achieve independence are half the amount at the PQ than at Québec Solidaire. The PQ calculates $231 billion in 4 years against $568 million for QS. This difference is mainly explained by the fact that the accession to independence of the PQ does not go through the creation of a Constituent Assembly unlike the Solidarity, explains Mr. St-Pierre Plamondon.

The money would be used to “update studies” such as the impact of independence on the economy and “economic and social preparation”. No amount is planned in 5 years, since the PQ promises to achieve independence in a first term.

29.9 billion $ in expenditure

< p>The Parti Québécois estimates all of its election promises at $29.7 billion by 2026-2027. However, it plans to fetch revenues of $12.3 billion. A first version of the financial framework given to journalists in the morning, however, contained errors in the figures. In the evening, the party returned a corrected version (see below).

In the income column, there is a “tax on excess profits”. This is a tax on “crisis profiteers” namely the pandemic and the war in Ukraine. For example, it would target the energy sector, such as the oil companies, and would generate revenues of $1 billion in 2022-2023 and $250 million in 2023-2024. This tax is calculated over two years and could be added depending on the duration of the crises.

“We will […] repatriate certain sums which are robbery from certain sectors,” he said. However, the details of this measure will be announced shortly during the campaign.

As for the tax on GAFAM (Google, Apple, Facebook, Amazon and Microsoft) it is set at 3% of the turnover of Quebec businesses of these companies and would bring in approximately 350 million per year ($320 million this year and $390 million, in 5 years).

The formation of Paul St-Pierre Plamondon would widen the deficit to $4.6 billion in 2022-2023. It is the promise to pay a purchasing power allowance, where families would receive between $750 and $1,200 to fight inflation, which eats up the most money, at $6.3 billion this year. /p>

“We are the only party to say: 'no tax cuts, no tax cuts',” said Chief Paul St-Pierre Plamondon. This is due to the desire to ensure and improve the quality of public services, the leader said, adding that it was the “cornerstone” “guiding all their choices”.

< p>Deficit in sight

The following two years, there would be surpluses of $283 million and $442 million. Then the meters return to $0 in 2025-2026. By the following year, the party would end in the red of $492 million, an area that the leader describes as “comfortable” and “reasonable”. The main reason being the increase in investments in the shift to home care which will reach 3 billion in 2026-2027 for a total of 7.7 billion in 5 years.

Expenditure for the green plan of the PQ, including its climate pass, are significant: $1.5 billion more than what is already planned for a total of $3 billion. However, they are partly financed by a reduction in payments to the Generations Fund.

Among the other sources of revenue, there is the abolition of recourse to private health agencies, the review of physician remuneration and more effective management of human resources in health.

The $6 billion that the PQ hopes to seek in health in Ottawa is not calculated in this financial framework.

“The Parti Québécois is the only political party to present a financial framework validated by an independent expert, specified the Chief Paul St-Pierre Plamondon. It is important to say this because the other parties have not had the courage to submit their financial year to a third-party audit to know if what is presented is credible or not.

This expert is, Paul Makdissi, professor in the Department of Economics at the University of Ottawa.

Fiscal Balance

2022-2023 : -$4.6 billion

2023-2024: + $283 million

2024-2025: + $442 million

2025-2026: 0

2027-2028: -$492 million

*In a first version of this text, it was written that the party estimated its electoral promises at $29.9 billion. However, in the evening, following questions from journalists, the party confirmed that transcription errors from the original file had been made. Thus, the total expenditure went from $29.9 billion to $29.7 billion. The 2023-2024 surplus went from $383 million to $283 million and that of 2024-2025 from $544 million to $442 million. And finally, the 2026-2027 deficit, which was $518 million in the first version, was adjusted to $492 million. The party ensures that the version verified by the independent expert was the one with the correct figures and that the error occurred later when transcribing it into the party's final document.

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