QUEBEC - Quebec's finance minister released a bullish economic update Tuesday, paving the way for Premier Jean Charest to launch a provincial election campaign in which stewardship of the economy will be the major issue.
Monique Jerome-Forget announced measures worth $249 million to limit the impact of the current global credit crisis.
She also trotted out an additional surplus of $484 million for the current 2008-09 fiscal year, which boosts the government reserve to $2.3 billion to ensure balanced budgets this year and in 2009-10.
The measures announced include the indexing of welfare payments at a rate of 2.36 per cent. As well, the amount used for calculating the tax credit for retirement income will rise from $1,500 to $2,000 one year earlier than mentioned in the last budget.
The economic statement will be a main plank in the Liberals' electoral platform in a campaign that Charest is expected to kick off on Wednesday leading to a Dec. 8 election.
Charest will be pushing for a majority government after being in a minority position since the previous election in March 2007.
Internal Liberal polls indicate the party is hopeful it could win between 75 and 80 of the province's 125 seats. The Liberals need 63 to form a majority government.
Liberal strategists believe 35 seats are in play, particularly in the Monteregie and Laurentian ridings which surround the island of Montreal.
The party is also aiming to make significant gains among the crucial francophone vote.
The key in the campaign will be the economy, and Jerome-Forget sounded confident as she talked about the economic update.
"Quebec is in a very good position to go through the recession that is being experienced south of the border," she said.
"Because we planned to have this infrastructure program, because we promoted investment, because we reduced taxes, because we cut the capital tax on the manufacturing sector. . . we will go through this situation in a very positive fashion."
But Jerome-Forget is scaling back the growth projections for Quebec's economy through next year -- to 0.8 per cent from 1.5 per cent this year, and to 0.6 per cent from two per cent next year.
"Now, let's remember, 0.6 per cent is not heaven. It's very modest, it's totally modest. There is going to be growth. There won't be a recession, there's growth, but it's going to be mild.
"My approach and my government's approach has always been rigorous and to be very careful about how you do things. We need a very rigorous approach. We need a government that is going to be in charge, won't move in dramatic fashion but will steer the ship in the right direction.
"The past talks for the future. Look at what we've achieved up to now. We have this reserve in the bank, in my handbag, and I'm very happy to use it in difficult times."
