Quebec Finance Minister Nicolas Marceau explains the government public accounts at a news conference in Quebec City on Oct. 31, 2013.JACQUES BOISSINOT/The Canadian Press
Fighting corruption may have generated nearly a billion dollars in savings, according to Quebec Finance Minister Nicolas Marceau, but that may not be enough for the province to meet its zero-deficit target by the end of the fiscal year.
Strict anti-collusion rules in the awarding of government contracts that the Parti Québécois minority government adopted late last year have reduced costs for major infrastructure projects, Mr. Marceau said.
The Charbonneau commission of inquiry into corruption in the construction industry has lifted the veil on price-fixing among construction and engineering firms, political parties and officials. Bids on government contracts are lower since corrupt practices have been eliminated, the minister said.
The exact amount of the savings will be revealed in a detailed report later in November, but Mr. Marceau said anti-corruption measures helped reduce the increase in the province's gross debt by $1.9-billion.
"I will soon release information on costs [of infrastructure projects] that will illustrate the tangible impact the fight against corruption has had on capital spending costs," Mr. Marceau said. "Half of the $1.9-billion [in the lower-than-expected debt increase] comes from the reduction in capital spending costs."
As of March 31, Quebec's gross debt was $191.8-billion, which represented 53.3 per cent of the province's gross domestic product, according to the Public Accounts report for 2012-2013, which the Finance Minister tabled on Thursday.
"Fighting corruption … in monetary terms is quite profitable," Conseil du trésor Chair Stéphane Bédard said. "The effects are tangible for the pocketbooks of Quebeckers."
But it will not be enough to offset to the shortfall in revenues anticipated during the current fiscal year. Mr. Marceau hinted that because money was flowing in more slowly than expected, the government may have to give up on its plan to eliminate the deficit by March, 2014.
"Sure it is necessary to have healthy public finances and a balanced budget … But it is out of the question for us to take actions that could jeopardize our economic growth. That won't happen," Mr. Marceau said.
Premier Pauline Marois had abandoned key election promises, including the elimination of the health tax, to focus on the zero-deficit target. Austerity measures have kept the increase in spending to 1.2 per cent in 2012-2013 from the previous fiscal year, the Public Accounts report said. But the cutbacks cost the government support.
Mr. Marceau is expected to project a deficit of about $500-million for the end of current fiscal year when he releases an economic update in late November or early December.