Liberal Premier Jean Charest is offering Quebecers modest income tax cuts and more health-care spending in a 2007-08 budget delivered on the eve of an expected election call.
The fiscal plan includes $250 million in tax cuts to take effect in January, 2008.
Quebec also announced it's increasing health spending by $1.3 billion.
Other spending includes:
- $7.9 billion on roads, bridges and overpasses over the next four years.
- $567 million in spending on education.
- Drivers who purchase an eligible hybrid vehicle will be rewarded with an increased refund of $2,000 in provincial sales tax.
- Eliminating the tax on capital for manufacturing businesses that invest.
The modest cut in income taxes means Quebec will have the sixth-lowest personal income taxes among the 10 provinces.
But Finance Minister Michel Audet says at the end of the Liberals' next mandate, should they be re-elected, Quebec will be at the Canadian average.
The province's debt for the 2007-2008 budget is $122 billion and Quebec is warning of a possible deficit of almost $1 billion for next year's budget.
The budget also includes a strategy to help Quebec's aging population -- including the splitting of retirement income, promoting home support and promoting phased-in retirement.
Audet insisted earlier that his budget would be a real one that isn't just packed with election promises to win votes for the Liberals.
Charest is expected to make an election call on Wednesday with a date set for March 26.
Parti Quebecois Leader Andre Boisclair criticized the Liberals on Monday, saying the budget will be based on phantom numbers.
"Mr. Charest has not been able to produce any document or any agreement, and signed agreement, with the federal government that could really give a clear indication about the revenues of the government for the next budgetary period,'' Boisclair said in Quebec City.
"Obviously, Mr. Charest will use this budget to try to convince Quebecers that he's the best to govern Quebec."
In a pre-election pep talk last weekend, Charest told party members that unity will be an issue in the campaign.
"It's about our wanting to belong to a bigger whole, to a Canadian federation," Charest told about 2,500 provincial Liberals gathered in Quebec City on Saturday.
He also attacked Boisclair and previous PQ governments saying their only priority is a referendum as soon as possible.
The key planks for the Liberals in the upcoming election include a promise to reduce surgical wait lists, improve education and focus on the environment.
Charest also promised to cut income tax, raise tuition and hire 1,500 new doctors if his Liberals are re-elected to a second term.
With files from The Canadian Press
