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Budgetary rigor: the Couillard government acts like a pyromaniac firefighter Français


News provided by

Institut de recherche et d'informations socio-économiques (IRIS)

Jun 19, 2018, 05:30 ET

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MONTREAL, June 19, 2018 /CNW Telbec/ - The current economic upturn is not due to the period of fiscal constraints imposed by the Quebec government during the two years following the election of Philippe Couillard. A study published today by IRIS research institute shows that it is rather the rise in Ontario's economic growth, coupled with increases in household consumption and public & private investments, which explains why our economy is currently doing well. The study analyzes the economic trends of the past 15 years.

"Coming back about the parliamentary session this last Friday, Philippe Couillard praised his economic record. Yet, the fiscal austerity put in place by his government has nothing to do with the good health of our economy. On the contrary, budgetary rigor has hurt", observes Raphael Langevin, economist and associate researcher at IRIS. "Oppositely to popular beliefs, ministers Leitão, Marceau and Bachand have not cut the fat, but have rather butchered out important budget items such as infrastructure investments."

"First of all, Quebec's economic potential was constrained by harmful austerity policies rather than maintaining investments, which brings investors confidence", explains the study's author. Starting in the second half of 2016, the government stopped cutting public spending and instead started to stimulate the provincial economy. This has led to investor interest and to an increase in household consumption and disposable income.

With fixed-date election, an increasingly clear electoral cycle seems to be emerging. "Successful party leaders behave like paternalistic figures by pretending to cut off unnecessary spending before strongly reinvesting in the run-up to the elections. The zero deficit is an electoral strategy that works perfectly, but its contribution to the economy is highly problematic", concludes Raphael Langevin.

About IRIS
IRIS – Institut de recherche et d'informations socioéconomiques – is an independent and progressive not for profit research institute founded in 2000. The Institute produces studies on current issues (public-private partnerships, taxation, education, health, environment, etc.) and offers an alternative voice to the perspectives that the economic elites defend.

To read the study (French only) : https://iris-recherche.qc.ca/publications/relance

SOURCE Institut de recherche et d'informations socio-économiques (IRIS)

For further information: Laurent Deslauriers, Communications Officer, 438 862-8051, [email protected]

Related Links

http://www.iris-recherche.qc.ca

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Institut de recherche et d'informations socio-économiques (IRIS)

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