Premier Paul St-Pierre Plamondon said Tuesday, “The previous government left the house in a mess,” as he prepares the economic and financial update. The CAQ government and its Finance Minister, Eric Girard, had always prided themselves on leaving the house in the same order as they had received it from the Liberals in 2018, but now the new PQ government leader has refuted this. “We are facing a significant budget deficit and we will have to take bold decisions to reduce it,” he wrote on social media on Tuesday evening, after meeting with his Finance Minister, Nicolas Marceau, which suggests difficult trade-offs lie ahead. He did not, however, specify the size of the shortfall he is facing. At the last meeting of the Fréchette cabinet on Oct. 14, just after the elections that wiped them off the map, CAQ ministers nevertheless insisted that they were leaving the house in order. “We are leaving the house in a better state than before,” said Deputy Premier Ian Lafrenière. “We have the second or third smallest deficit in Canada,” said Girard, the outgoing finance minister. When it came to power in 2018, the CAQ had inherited a surplus of $8 billion from the outgoing Liberal government. But the CAQ government has since had to manage a pandemic, Girard was keen to point out. “I can assure you that Quebec’s new government is determined to regain control of our public finances after years of deficits under the CAQ,” wrote St-Pierre Plamondon in his post. Tabled on Aug. 17, just before the election was called, the Pre-election Report on the State of Quebec’s Public Finances nevertheless signalled a slight improvement. It forecast an accounting deficit of $5.2 billion (0.8 per cent of GDP) in 2026–2027, an improvement of $1.1 billion compared with the deficit forecast in the 2026–2027 budget tabled by Girard earlier in March. However, taking into account the payment to the Generations Fund, the CAQ forecast a deficit of $8.6 billion for 2026–2027. During the election campaign, the PQ pledged to return to a balanced budget by 2028–2029, one year earlier than required by the Balanced Budget Act. To achieve this, the PQ government is relying in particular on cuts to bureaucracy, as well as a reduction in the growth of the public sector’s wage bill. However, it will also have to fulfil its commitments, which could prove costly for the public purse. During his first 100 days in office, St-Pierre Plamondon has, in particular, pledged to abolish the QST on second-hand goods, as well as to reduce the tax on petrol by the equivalent of seven cents per litre. He has also already released $28 million in emergency aid to tackle homelessness – in line with his promise to invest $1 billion over four years to reduce homelessness. He has also pledged to provide $100 million to tackle food insecurity. The PQ’s financial framework also includes a 20 per cent reduction in taxes for SMEs, as well as several tax cuts and targeted tax credits for citizens. New economic appointments St-Pierre Plamondon announced on Tuesday a number of economic appointments to support him. While the former head of Desjardins, Guy Cormier, has just defected to the Liberal Party of Canada (LPC), he has in fact recruited one of his right-hand men. Isabelle Garon will be responsible, in particular, for the Summit on Homelessness and the National Consultation on Education, two of the priorities set out by the new PQ government for its first 100 days. Garon previously served as senior vice-president of marketing, communications and partnerships, and chief of staff to the president at the Desjardins Group. She is the second key figure from this financial organization to make the move into politics in the space of just a few days, following Cormier, who on Sunday became the LPC candidate for the by-election in Laurier-Sainte-Marie. Garon will also be tasked with “monitoring the progress of the Commission on Regulatory and Bureaucratic Relief, as well as steering the government’s key strategic objectives,” wrote the premier. He noted that she has more than 30 years’ experience within major organizations, from which she has developed the “ability to operate in complex environments and to drive high-impact strategic transformations.” St-Pierre Plamondon also announced the appointment of Laurent Desbois as the premier’s economic adviser. Desbois was responsible for currency risk management at the Caisse de dépôt et placement, but has also worked for Merrill Lynch Citibank and on the Bank of Canada’s Foreign Exchange Committee, as well as having served as mayor of Outremont and vice-chair of the City of Montréal’s Finance and Administration Committee. “His mandate will be to help restore public finances and to support the Government of Québec in identifying opportunities for economic growth against the backdrop of the trade dispute with the United States,” the premier explained. He will therefore be called upon to assist the President of the Treasury Board, Alain Therrien, in reviewing “all ineffective subsidies ... and sources of waste within the state apparatus,” St-Pierre Plamondon wrote. This report by The Canadian Press was first published in French on Nov. 3, 2026. Patrice Bergeron, The Canadian Press
