Quebec Premier Jean Charest kept an election promise on Thursday, giving Quebecers a billion-dollar tax cut. But without opposition support, voters may soon head back to the polls.
Both the Action democratique du Quebec and Parti Quebecois have said they will vote against the budget.
Finance Minister Monique Jerome-Forget announced $950 million in income tax cuts across all income levels, and nearly $300 million in other tax-saving measures.
Under the income tax cuts, a couple with two children and a family income of $75,000 per year will save $984.
"If you're a family and you receive a thousand dollars, you can do a fair amount of things with that," Jerome-Forget told reporters.
The minority Liberals, however, need the support of at least one opposition party to pass the budget and cling to power in a vote expected in early June.
The ADQ immediately repeated that it would vote against the budget, while the PQ made a similar declaration later in the day.
"It's an irresponsible budget," said PQ finance critic Francois Legault.
ADQ strategist Tom Pentefountas echoed that view, adding that the budget is "very much politically motivated for the following reasons: Jean Charest is going through with these tax cuts, and it's unfortunate because we've got a situation where we're increasing our debt by $3 billion this year, and $4 billion next year.
"We've got a situation where we've got schools falling apart, hospitals that are not meeting expectations, and roads and bridges and infrastructure that's not up to par," Pentefountas told CTV's Mike Duffy Live. "So for all these reasons, we're going to object to this tax cut.
The tax cuts follow an annual promise Charest first made in 2003, but failed to deliver. Part of the cuts are being financed from the nearly $700 million in equalization payments from Ottawa announced in the final days of the election campaign -- a deal which the ADQ and PQ pounced on as evidence that Charest was trying to buy votes.
Jerome-Forget said opposition parties will have to answer to Quebecers if they trigger an election just a few months after the most recent vote.
"The two parties can overthrow the government for all kinds of reasons, including the budget," Jerome-Forget told reporters. "I don't know if it will be seen particularly well to relaunch ourselves into an election campaign.
"I won't bet (on opposition support), but I'm not a betting person.''
The opposition wants a balanced budget with measures to control spending and debt growth along with a commitment to investments in health care and education.
According to the province's Auditor General, Quebec's health and social services network showed an accumulated operating deficit of $1.3 billion.
Analysts say Charest's proposed cuts are an effort to appease his constituents who were upset he didn't follow through with his promise to cut taxes in 2003.
Despite the impending cuts, some analysts predict the PQ will support the budget considering they have been without a leader since Andre Boisclair stepped down and are not ready for an election.
Even if the budget is voted down, Quebecers may be experiencing election fatigue after the $70 million election in March.
The Liberals have 48 seats, while the ADQ has 41 and the PQ has 36.
February's budget, Charest's last before the election, offered modest tax cuts worth $250 million and more health-care spending.
Highlights of Charest's minority government budget:
- Income tax cuts of $950 million, effective Jan. 1.
- Quebec government strikes new health task force to study the role of private care, Canada Health Act.
- Jerome-Forget proclaims balanced budget.
- Government warns debt will rise to $125.2 billion in 2007-2008.
- Health and social services budget to increase by $1.4 billion in 2007-2008.
- Education budget to increase by $643.6 million in 2007-2008.
- Public service staff levels to be reduced by 3,800 in the next three years.
- Government to invest $30 billion over five years to renovate hospitals, schools and roads.
- Finance minister accelerates reduction of tax on capital, which will be eliminated after Dec. 31, 2010.
- Capital tax credit for business modernization investments raised from five to 10 per cent.
- Accelerated payments to Generations Fund of $200 million this year to reduce debt.
With files from The Canadian Press
