QUEBEC - Premier Jean Charest's minority government secured its survival Thursday by tabling a ho-hum budget that tried to offset a grim financial outlook with crumbs left in the province's cupboard.
Weak growth projections gave Finance Minister Monique Jerome-Forget few goodies to offer opposition parties, but modest new funding for families was enough to head off opposition from the Action democratique du Quebec.
"We are proud the government has taken into account our demands,'' ADQ finance critic Gilles Taillon told reporters.
"I will make a recommendation to my caucus not to defeat this budget.''
The ADQ has also been hobbled recently by weak poll numbers, making an early election an undesirable option.
The Liberal budget pegs economic growth at a meagre 1.5 per cent for 2008, a full percentage point lower than the previous forecast for this year.
Jerome-Forget's modest means were matched by her emphasis on prudence for uncertain times ahead.
"In this budget we managed to put together a package that reflects all three parties,'' she said. "None of us get all that we want, but all of us get some of what we want.''
The finance minister blamed economic troubles south of the border, increased competition from emerging markets and the spike in the Canadian dollar for the tight financial position.
"When the sea is rough, we must keep a firm grip on the helm to stay the course towards our objectives,'' Jerome-Forget said as she rose in the legislature to table her second budget.
"The actions taken by our government should enable Quebec to avoid a recession.''
Despite Jerome-Forget's financial woes, Quebec's planned program spending will jump 4.2 per cent to $56.9 billion in 2008-09.
With revenues flat at $62.9 billion, the government will be forced to use $1.4 billion of a $1.8-billion reserve to balance its ledgers.
The budget contains no new tax increases and has few ambitious, or expensive, program initiatives.
Even the olive branch to the ADQ, five measures for families, will cost only $59 million this year.
Calling Quebec a "paradise for families,'' Jerome-Forget will finance the creation of 20,000 new spaces over the next five years in the $7-a-day daycare program.
Her budget offers tax credits for parents who use private daycare.
"This is an important plus,'' Taillon said. "It's not the freedom to choose, but for that we'll have to wait.''
The plan also gives tax credits for fertility treatment and adoption.
The Parti Quebecois panned the budget in broad strokes and accused the government of hiding a deficit.
"This is the budget of a government with no political courage,'' said PQ finance critic Francois Legault.
Among the few eye-grabbing highlights in the budget is the elimination of the capital tax for Quebec's 1,400 manufacturing companies.
"This tax is a drag on investment,'' Jerome-Forget said in her speech.
The $95-million cut, which will take immediate effect when the budget is passed, speeds up help for an industry struggling to cope with the collapse of the U.S. export market.
Business groups were grateful for the help, but said it won't be enough to shelter the province from an economic downturn.
"Private investment in Quebec has stalled,'' said Michel Kelly-Gagnon, who heads a provincial business lobby. "Such a situation calls for more energetic financial incentives for all of Quebec businesses.''
Hydro-Quebec will be tabbed to increase dividends to the government to 75 per cent from 50 per cent to help with the province's debt, which is calculated to hit $127.4 billion this year.
Jerome-Forget's plan was designed to avoid a repeat of last year's antics, when both opposition parties almost sparked an election by declaring they would vote against the budget.
The PQ eventually caved after several days of high-stakes negotiations. This year, Jerome-Forget says, the budget is a take-it-or-leave-it document.
The ADQ seemed resigned to that fact.
"We will be there for the vote,'' Taillon said. "We will not fight the budget.''
The vote is not expected until April 8.
The Liberals have 48 seats in Quebec's 125-seat legislature, compared with 41 for the ADQ and 34 for the PQ. There are two vacant seats.
