Canada: Quebec's spring budget to offset inflation impact, offers one-time payment of $500 to adults

After tabling his budget for the 2022-23 fiscal year, Quebec’s Finance Minister Eric Girard had told reporters that the one-time payment of $500 will be transferred directly into Quebecers’ bank accounts after they file their 2021 tax returns.

Some 6.4 million Quebecers will receive the payment, at a total cost of $3.2 billion.

It’s Girard’s fourth and last budget before Quebecers head to the polls in October.

The inflation in the province hit 5.1 percent in January and 5.4 percent in February, which, the government says justifies the direct payments to Quebecers.

Girard said that the payments are intended to help Quebecers fight significant inflation expected by the government to reach 4.7 percent in 2022.

Girard added that this money is not to boost votes and help his government win a second mandate and added that his government expects inflation to drop to 2.3 percent by the second half of 2023.

The province is expected, says Girard to return to balanced budgets by the 2027-28 fiscal year.

But opposition parties strongly opposed Girard’s decision to redistribute billions into people’s bank accounts, accusing him of trying to win votes.

(Reporting by Asha Bajaj)