June 22, 2017 / 7:25 PM / 2 years ago

Quebec reports annual budget surplus of C$4.5 billion

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch

QUEBEC CITY (Reuters) - Quebec, Canada’s second-most populous province, said on Thursday its budget surplus for the year ended March 31 totaled C$4.5 billion ($3.4 billion), almost double its target, as it spent less and took in more taxes than it had forecast.

S&P Global last week raised Quebec’s rating to AA-minus from A-plus, citing “strong budget surpluses and declining debt burden.” That put Quebec’s S&P rating above Ontario’s, which is Canada’s most populous province, for the first time since 2006.

Quebec Finance Minister Carlos Leitão in March had forecast a surplus of C$2.3 billion, saying that all but C$250 million would go to Quebec’s Generations Fund that was created to offset the province’s gross debt of C$206 billion.

Quebec had a net budget surplus of C$2.5 billion after making that payment to the Generations Fund.

The yield on Quebec’s 10-year bond was trading at half a basis point below Ontario’s 10-year bond on Thursday, indicating that Quebec pays less to borrow.

The surplus will be held in a reserve to be used in case of exceptional circumstances, an official in the finance minister’s office told Reuters.

Reporting by Kevin Dougherty in Quebec City; Additional reporting by Fergal Smith in Toronto; Editing by Jim Finkle and Nick Zieminski

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below