March 2017

THE ECONOMIC PLAN

IN BRIEF

1 500 additional staff for student services starting in September 2017, 7 200 within the next fi ve years

ANUNPRECENDENTED $3.4-BiLLiON PLAN FOR EDUCATiONAL SUCCESS

2

EDUCATiON AND FAMiLiES

It is essential to invest early in the educational success of our youthAn additional allocation of close to $130 million to early childhood in order to:

supporteducationalinterventionamongyoungchildren facilitatechildren’stransitiontoschool supportcommunityorganizationsthatofferactivitiestofamilies developservicesgearedtotheneedsofchildrenwithdisabilities

A plan for perseverance and educational successAdditional funding of over $1.8 billion for schools in order to accompany young people and help them achieve success by:

enablingthemtogetofftoagoodstartinkindergartenandfirstgrade givingaboosttoelementaryschoolsinordertobettersupporttheimplementationofresponseplansforstudentsexperiencingdifficulties

supportingparentsinordertopreventlearningdisabilities enhancingsupportforstudentsinhighschool,vocationaltrainingandadulteducationprograms

supportinginitiativesdesignedtoboostliteracyandfrancization

3

Quality advanced training to move Québec forward Nearly $1.5 billion to better prepare young people for the future in order to:

improvethegraduationrateandacademicsuccessthrough,amongotherthings,thehiringofmoreprofessorsinuniversities

offerappropriatesupporttostudentswithspecialneeds promoteattractionofinternationalstudents encouragepartnershipsbetweeninstitutions,concensusbuildingandaregionalpresence

Investing in quality educational and sports infrastructure

HigHEr EDUCATiON

MEETINGTHE FUTUrE NEEDS OF QUÉBEC

4

Québec must develop a workforce that meets the needs of the marketNearly $290 million will be used to:

promotetradesthatareindemandandencourageyoungpeopletotrainforthosetrades

supportlabourmarketintegrationforimmigrants• promoterecognitionofpriorlearningandskills• increasesupportforfrancizationeffortsintheworkplace• supportthehiringofimmigrantworkers

supportcontinuingeducationandskillsdevelopmentthroughbetteraccessto:• part-timevocationalandtechnicaltraining• continuingeducationandrefreshertraining

assistbusinesseswiththemanagementoftheirlabourforce• helpbusinesseshire,integrateandretainworkers• promotebetterlabourmarketintegrationforwomen

Young people are the future of Québec Toenableyoungpeopletodeveloptheirstrengths,anadditionalinvestmentof$7.5millionisbeingallocatedtothepromotionofstudentengagementaspartofForcesAVENIR

Québec must develop a workforce that meets the needs

WOrKFOrCE TrAiNiNg

5

Additional resources to meet Quebecers’ needs

Close to $3 billion more for health over two years

Access to quality health care is a priority

iNCrEASED AND STABLE FUNDiNg toreducewaittimesinhospitals tofacilitateaccesstosurgeryanddiagnostictests totrainalargernumberofspecializednursepractitioners tohiremorehealthcarepractitionersinCHSLDsandforhomecare tosupportpeoplewithanautismspectrumdisorder

A FOCUS ON HEALTH PrEVENTiON Healthylifestylesatschoolandathome Asuicidepreventionstrategy

WOrKFOrCE TrAiNiNg HEALTH

Breakfasts will be served in CPEs and fruit and vegetable snacks will be offered to young people in schools in disadvantaged areas

6

Créditphoto:CaissededépôtetplacementduQuébec

Créditphoto:VilledeQuébec

Confi rmed support for three major public transit projectsréseau électrique métropolitain (rEM)

Improvementofcommutingflowby• offeringconnectionsacrosstheentiresystem• linkingdowntownMontréal,theSouthShore,theWestIsland,theNorthShoreandPierre-Elliott-TrudeauInternationalAirport

Montréal métro blue line ImprovedaccesstothenetworkinthenortheasternsectorofMontréal

Québec-Lévis bus rapid transit (BrT) Atoolfordensificationandurbanrenewal• gearedtotheobjectivesofsustainablemobility• withstructuralimpactsontheareaserved

DEVELOPING SUSTAiNABLE MOBiLiTY

7

Sustainable transportation: the way of the futureIncreased funding for public transit throughout Québec:

supportforthecreationoftheAutoritérégionaledetransportmétropolitain $333milliontofurthersupportpublictransitbodiesintheirdevelopmentprojectsinorderto• increasesupportforregionalpublictransit• enhancesupportforparatransit

Electricity for transportation of the futureAdditional support for transportation electrifi cation:

$70millionmoreovertwoyearstoofferrebatesofupto$8000forthepurchaseofanelectricvehicle

Acquisitionofclosetoanadditional10000newelectricvehiclesbyJune30,2018 Pilotprojectpromotingtheacquisitionoffullyelectricusedvehicles

The Écocamionnage program to improve energy effi ciency and reduce greenhouse gas emissions in the freight transportation sector

8

A forward-looking economyrESEArCH AND iNNOVATiON

Over $830 million will be used to stimulate research and innovation, including: $305milliontoencourageinnovationandthenextgenerationofscientists $180milliontoencourageresearchandinnovationinhighereducationinstitutions $100milliontocreateanartificialintelligencesuper-cluster $117.5milliontoimplementthelifesciencesstrategy

ENCOUrAgiNg BUSiNESS iNVESTMENT

extensionofthetaxholidayforlargeinvestmentprojects introductionofanadditionalcapitalcostallowanceof35%tosupportthemodernizationofbusinessesandthusincreasetheirproductivity

The electricity rate reduction for fostering investment projects is a success:additional investments of $800 million

BOLSTERING ECONOMiC DEVELOPMENT

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ENTREPRENEURSHIP: POWERHOUSE OF THE FUTUREMore than $440 million for entrepreneurship and financing for businesses in order to:

supportthenewentrepreneurshipactionplan developentrepreneurshipamongyoungpeople promotethestart-upandgrowthofinnovativebusinesses

ON BEHALF OF rEgiONAL ECONOMiC DEVELOPMENT, OVEr $520 MiLLiON WiLL BE iNVESTED TO

createtheFondsd’appuiaurayonnementdesrégions recognizeQuébec’snationalcapitalstatusandMontréal’smetropolisstatus

Every region of Québec must develop all of its talents and strengths Making tourism a vector of economic development by:

supportingmajortourismprojects increasingsupportforfestivalsandevents injecting$100millioninSépaqparks fosteringaccesstotouristattractionsforpersonswithamobilityimpairment

Nearly $160 million for stimulating investment in the agri-food sector in order to: helpagriculturalproducersupdatetheirbuildingsandequipment supportinnovativeagricultureandthefoodprocessingindustry promotereducedpesticideuse expandtheprogramfordrainingandlimingfarmlandtootherregions promotegreenhouseconstruction

The forest sector will obtain $46 million to: enhancetheProgrammeInnovationBois supportbodiesinvolvedininnovationintheforestsector createaplatformfordevelopingcompositepanelsandengineeredwoodproducts

10

The resources of today will serve the generations of tomorrow To protect the environment and renewable resources, Québec is making investments in order to:

preventrisksassociatedwithcoastalerosion promotethereplacementofoutdatedresidentialseptictanksintheregionsandtheprotectionoflakesandrivers

offermoresupportforthecariboumanagementplanandreinvestinwildlifeprotection

fostertherenewalofpisciculturalandforestresources

Recognizing the insular character of the Îles-de-la-Madeleine

GreatertaxassistanceforinhabitantsoftheÎles-de-la-Madeleine EnhancementandextensionoftheadditionaldeductionforthetransportationcostsofallmanufacturingSMEsoftheÎles-de-la-Madeleine

Extension of the rénoVert tax credit to March 31, 2018

11

The Maritime Strategy: developing the St. Lawrence RiverFunding is being provided in order to:

createtheCentred’expertiseengestiondesrisquesd’incidentsmaritimesintheÎles-de-la-Madeleine

preserveLacSaint-Pierre supportthedevelopmentofcommercialfishingandaquaculture

The Plan Nord: capitalizing on our natural resourcesNew initiatives are making it possible to, in particular:

buildtheInstitutnordiqueduQuébec improvethetelecommunicationsnetworkintheBasse-Côte-Nordregion installgreenhousesintheNorthforthebenefitoflocalandAboriginalcommunities

The visibility of Québec$113 million for cultural development in order to:

supporttheprintmediasothatitcanprovidediversifiedregional,localandcommunityinformation

enhancethetaxcreditforQuébecfilmandtelevisionproduction provideadditionalsupporttomuseums increasesupportforQuébec’smusicsector

Additional support of $100 million to strengthen Québec’s international action

12

A reduction of more than $500 in the tax burden on a couple with two equal work incomes of $45 000, taking into account:

theeliminationofthehealthcontribution thegeneraltaxreduction

QUEBECErSWILLBENEFiTFROMAPErMANENT TAX rEDUCTiONOFMORETHAN$1 BiLLiONAYEAR

2016 2017 2018

Coupleinwhicheachpersonpaidahealthcontributionof$200Gradualeliminationoftheplannedhealthcontribution 50 400 400

Refundofthehealthcontributionpaidin2016 350 – –

Generaltaxreduction – 110 110

TOTAL 400 510 510

illustration of the reduction in the tax burden for a couple with two equal work incomes of $45 000

13

Additional investment of $80 million over fi ve years in the Support Program for Community Organizations to ensure the health and welfare of the most vulnerable people

Helping those in needTo combat poverty and social exclusion, more than $300 million will be allocated in order to, among other things:

investintheconstructionandrenovationof3000socialhousingunits encouragethesocialinvolvementofvulnerableyouthfrom16to29yearsofage combathomelessness

Aboriginal communities will receive $195 million: $135milliontosupporttheireconomic,socialandcommunitydevelopment $60millionforthegovernment’sAboriginalSocialDevelopmentActionPlan

Governmental action plan to counter elder abuse 2017-2022, aimed at: hiringandretainingcommunityworkerswhosupportseniorsinvulnerablesituations

enhancingtheservicesofferedbytheAideAbusAînéshelpline

takingactiontocombatelderabuseandisolationbyorganizingfriendshipvisitstoelderlypeople

An additional $82 million for: takingactionongenderequality fightingbullying ensuringbetteraccesstojusticeandcompensationforcrimevictims(IVAC)

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Sound management of public fi nances fosters economic growth and job creation

THEECONOMY iS ACCELErATiNgANDCrEATiNg JOBS

The economy is growing faster. In 2016, the economic growth rate stood at 1.7%, the highest rate since 2011.

Average1.7

Average1.2

1.01.4 1.3 1.2

1.7 1.7 1.6

2012 2013 2014 2015 2016 2017 2018

The disposable income of Québec householdsincreased by 4.5% in 2016.

Economic growth (percentagechange)

15

The strongest job creation in Canada: from January to December 2016, 90 800 mostly full-time jobs were created in Québec

90.883.6

75.5

3.3 3.0 -0.3 -0.6 -5.7 -6.2 -14.4

QU

É

N.S.

MA

N.

ONT.

N.B

.

SASK.

B.C.

P.E.I.

N.L.

ALTA

Job creation

2017-2018: a balanced budget for the third year in a row

Budgetary balance (millionsofdollars)

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2 191

0

2018-2019

0

2019-2020

0

2020-2021

0

2021-2022

0250

-1600

-2824

-725

Balanced budget

The debt burden is declining

gross debt as at March 31 (percentageofGDP)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

58

56

54

52

50

48

46

44

42

54.953.4 52.7

52.0

54.952.753.4

52.0

Debt reduction

(thousands)

45.0

OBJECTIVE

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