# EDGAR Filing Document

**Accession Number:** 0000722803
**File Stem:** 0001062993-26-003173
**Filing Date:** 2026-6
**Character Count:** 176368
**Document Hash:** 7adc67464d73f06001a09f0191764f37
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-26-003173.hdr.sgml**: 20260612

**ACCESSION NUMBER**: 0001062993-26-003173

**CONFORMED SUBMISSION TYPE**: 18-K/A

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260612

**DATE AS OF CHANGE**: 20260612

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** QUEBEC
- **CENTRAL INDEX KEY:** 0000722803
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 18-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 002-86339
- **FILM NUMBER:** 261085712

**BUSINESS ADDRESS:**
- **STREET 1:** 12 ST-LOUIS ST
- **STREET 2:** MINISTERE DES FINANCES
- **CITY:** QUEBEC QC CANADA GIR 5L3
- **STATE:** A8
- **ZIP:** 00000

**MAIL ADDRESS:**
- **STREET 1:** 12 ST-LOUIS ST
- **STREET 2:** MINISTERE DES FINANCES
- **CITY:** QUEBEC QC CANADA GIR 5L3
- **STATE:** A8
- **ZIP:** 00000

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

________________________________

**FORM 18-K/A**

**For Foreign Governments and Political Subdivisions Thereof**

________________________________

**AMENDMENT NO. 2**

**to**

**ANNUAL REPORT**

of

**<u>QUÉBEC</u>**

(Name of Registrant)

________________________________

**Date of end of last fiscal year: <u>March 31, 2026</u>**

**________________________________**

**SECURITIES REGISTERED\*<br>(As of close of fiscal year)**

<br> ---

| | | |
|:---|:---|:---|
| Title of issue | Amounts as to<br>which registration<br>is effective | Names of<br>exchanges on<br>which registered |
| N/A | N/A | N/A |

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Name and address of person authorized to receive notices and<br>communications from the Securities and Exchange Commission:

David Brulotte

*Délégation générale du Québec*<br>One Rockefeller Plaza<br>26<sup>th</sup> Floor<br><u>New York, N.Y. 10020-2102</u>

Copies to:

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| | |
|:---|:---|
| Catherine M. Clarkin | Guillaume Pichard |
| *Sullivan & Cromwell LLP* | *Ministère des Finances du Québec* |
| 125 Broad Street | 390, boulevard Charest Est |
| <u>New York, N.Y. 10004-2498</u> | <u>Québec, Québec, G1K 3H4, Canada</u> |

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\* The Registrant is filing this Annual Report on a voluntary basis.

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The undersigned registrant hereby amends its Annual Report on Form 18-K for the fiscal year ended March 31, 2026 (the "Annual Report") as follows:

The following additional exhibit is hereby added to the Annual Report:

[Exhibit: (99.3)](exhibit99-3.htm) [Report on Québec's Financial Situation - Preliminary results of 2025-2026.](exhibit99-3.htm)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment no. 2 to be signed on its behalf by its authorized agent.

---

| | |
|:---|:---|
| QUÉBEC | QUÉBEC |
| By: | /s/ Guillaume Pichard |
| Name: | Guillaume Pichard |
| Title: | Assistant Deputy Minister |

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Date: June 12, 2026

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## Exhibit 99.3

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![](exhibit99-3xu001.jpg)

**Exhibit 99.3**

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| |
|:---|
| **Highlights** |
| Based on the preliminary information available as at June 1, 2026,<sup>1</sup> the accounting deficit for the 2025-2026 fiscal year stands at $4.9 billion (0.8% of GDP). This is a significant improvement of $2.8 billion compared to the $7.7 billion deficit forecast in Budget 2026-2027. Taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, the budgetary deficit within the meaning of the *Balanced Budget Act* stands at $7.2 billion (1.1% of GDP). Revenues are adjusted upward by $584 million compared to the 2026-2027 budget forecast, due in part to economic activity remaining resilient despite uncertainty and tensions in the Middle East, and a good performance from mining companies in 2025, driven by the price of gold reaching historic highs. Revenues now stand at $161.1 billion, growing by 3.2%, whereas 2.8% growth was forecast in Budget 2026-2027.<br>Moreover, expenditures are adjusted downward by $2.2 billion compared to Budget 2026-2027. This downward adjustment mainly applies to portfolio expenditures, reflecting expenditures that were projected but not incurred, due in large part to lower operating expenditures, and to a lesser extent the slower-than-anticipated pace of completion of subsidized infrastructure projects, as well as measures taken during the year to ensure more efficient and targeted management of spending across all portfolios. Expenditures now stand at $166.0 billion with annual growth of 2.9%, whereas 4.3% growth was forecast in March 2026.<br>The net debt burden stood at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. Moreover, borrowings contracted for 2025-2026 stood at $32.1 billion.<sup>2</sup> |
| ![](exhibit99-3xu002.jpg) |
| Note : Preliminary results as at March 31, 2026. |
| (1) The deposits of dedicated revenues in the Generations Fund are presented under expenditures for illustrative purposes.<br> (2) Including $2.3 billion deposits of dedicated revenues in the Generations Fund, the budgetary deficit within the meaning of the *Balanced Budget Act* stands at $7.2 billion (1.1% of GDP). |
| _______________________________________ |
| 1. Except for the economic data, which reflects the information available as at June 5. <br>2. Long-term borrowings contracted between April 1, 2025 and March 31, 2026. |

---

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|:---|:---|
| ![](exhibit99-3xu004.jpg) | **Recent developments in the economic situation** |
| ![](exhibit99-3xu004.jpg) |  |
| ![](exhibit99-3xu004.jpg) | The Québec economy has remained resilient despite of trade tensions and uncertainty. Although real GDP growth slowed to 0.7% in 2025 (+1.7% in 2024) and declined slightly in the beginning of the year (-0.1% over the first two months of 2026 compared to the same period in 2025), domestic demand has remained strong (+1.9% in 2025).<br> Inflation, as measured by the consumer price index (CPI), inched up from 2.3% in 2024 to 2.4% in 2025. Despite some month-to-month volatility, it has largely remained within the Bank of Canada's 1% to 3% target range.<br> On average, for the first four months of 2026, Québec's CPI grew by 2.9%, driven in part by rising energy costs amid geopolitical tensions in the Middle East. Nominal GDP growth in Québec remained strong at 4.7% in 2025 (+5.9% in 2024).<br> In an environment that remains fraught with uncertainty, a labour market downturn has been observed. The unemployment rate rose slightly from an average of 5.3% in 2024 to 5.6% in 2025. On average, for the first five months of 2026, it has stood at 5.7%.<br> Despite this increase, the unemployment rate in Québec remains below the Canadian average (6.7% on average in 2026). Furthermore, the employment rate for people aged 15 to 64 in Québec stands on average at 77.2% in 2026, the highest in the country (74.4% Canada-wide). For the first quarter of 2026 compared to the same period in 2025, wages and salaries rose by 2.6%, after increasing by 4.5% in 2025.<br> The value of household spending grew by 4.4% in 2025 (+5.1% in 2024), indicating that consumption remains relatively robust despite signs of moderation.<br> As for businesses, despite ongoing uncertainty, the net operating surplus of corporations showed an increase of 4.7% in 2025 (+3.1% in 2024).  |
| ![](exhibit99-3xu004.jpg) |  |
| ![](exhibit99-3xu004.jpg) | \| Change in economic activity in Québec<br>(real and nominal GDP, quarterly percentage change) \| <br> \| Consumer Price Index for Québec<br>(annual percentage change) \|<br> \|:---\|:---\|:---\|<br> \| \| <br> \| \| |
| ![](exhibit99-3xu004.jpg) |  |
| ![](exhibit99-3xu004.jpg) | Note: The chart on the left shows the data from the economic accounts published on March 26, 2026 by the Institut de la statistique du Québec. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 2 \| 23

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![](exhibit99-3xu004.jpg) | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** | **Summary of preliminary results and adjustments since the Budget 2026-2027** |
| ![](exhibit99-3xu004.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu004.jpg) | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  | **> Preliminary results as at March 31, 2026**<br> The accounting balance shows a preliminary deficit of $4.9 billion in 2025-2026. This is an improvement of $279 million compared to the same period the previous year. This deficit is due to the following factors: <br> revenues of $161.1 billion, up 3.2% compared with the same period the previous year. The favourable change in revenues is largely attributable to the growth in wages and salaries, household consumption and the net operating surplus of corporations, reflecting the resilience shown by households and businesses since the start of the trade conflict with the United States;<br> expenditures of $166.0 billion, up 2.9% compared with the same period the previous year. This increase is largely due to portfolio expenditures (3.0%), particularly in the Santé et Services sociaux, Famille and Transports et Mobilité durable portfolios. Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.  |
| ![](exhibit99-3xu004.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu004.jpg) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) | **Summary of preliminary results as at March 31, 2026**<br>(unaudited data, millions of dollars, year-over-year change) |
| ![](exhibit99-3xu004.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu004.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **March 2026** <br>**budget** | **March 2026** <br>**budget** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** |
| ![](exhibit99-3xu004.jpg) |  | **2024-<br>2025** | **2025-<br>2026** | **Change<br>(M$)** | ***Change<br>(%)*** | **Level<br>(M$)** | ***Change***<br>***(%)*** | **Adjustment**<br>**(M$)** | **Level<br>(M$)** | ***Change***<br>***(%)*** |
| ![](exhibit99-3xu004.jpg) | Own-source revenue | 125 590 | 130 908 | 5 319 | *4.2* | 129 952 | *3.5* | 956 | 130 908 | *4.2* |
| ![](exhibit99-3xu004.jpg) | Federal transfers | 30 498 | 30 205 | -294 | *-1.0* | 30 577 | *0.3* | -372 | 30 205 | *-1.0* |
| ![](exhibit99-3xu004.jpg) | **Total revenue** | **156 088** | **161 113** | **5 025** | ***3.2*** | **160 529** | ***2.8*** | **584** | **161 113** | ***3.2*** |
| ![](exhibit99-3xu004.jpg) | Portfolio expenditures | -151 294 | -155 860 | -4 566 | *3.0* | -158 029 | *4.5* | 2 169 | -155 860 | *3.0* |
| ![](exhibit99-3xu004.jpg) | Debt service | -9 969 | -10 149 | -180 | *1.8* | -10 155 | *1.9* | 6 | -10 149 | *1.8* |
| ![](exhibit99-3xu004.jpg) | **Total expenditure** | **-161 263** | **-166 009** | **-4 746** | ***2.9*** | **-168 184** | ***4.3*** | **2 175** | **-166 009** | ***2.9*** |
| ![](exhibit99-3xu004.jpg) | Contingency reserve |  |  |  | *-* |  | *-* |  |  | *-* |
| ![](exhibit99-3xu004.jpg) | **ACCOUNTING SURPLUS (DEFICIT)** | **-5 175** | **-4 896** | **279** | ***-*** | **-7 655** | ***-*** | **2 759** | **-4 896** | ***-*** |
| ![](exhibit99-3xu004.jpg) | Deposits of dedicated revenues in the Generations Fund | -2 397 | -2 289 | 108 | *-* | -2 289 | *-* |  | -2 289 | *-* |
| ![](exhibit99-3xu004.jpg) | **BUDGETARY BALANCE<sup>(</sup>**<sup>**2**</sup><sup>**)**</sup> | **-7 572** | **-7 185** | **387** | ***-*** | **-9 944** | ***-*** | **2 759** | **-7 185** | ***-*** |
| ![](exhibit99-3xu004.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*.  |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 3 \| 23

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| ![](exhibit99-3xu004.jpg) | **> Adjustments since the Budget 2026-2027**<br> The data presented in Budget 2026-2027 indicate that a $7.7-billion accounting deficit was anticipated for 2025-2026 overall.<br> The preliminary accounting deficit for 2025-2026 now stands at $4.9 billion, an improvement of $2.8 billion since Budget 2026-2027.<br> The budgetary situation is stronger than forecast in Budget 2026-2027, owing to higher-than-expected revenues and expenditures that were projected but not incurred.<br> Revenues are adjusted upward by $584 million since Budget 2026-2027. They stand at $161.1 billion with annual growth of 3.2%.<br> Own-source revenue is adjusted upward by $956 million, taking into account the 0.2-percentage-point upward adjustment to nominal GDP growth in 2025, as well as the favourable impact of the good performance of gold mining companies in 2025 on corporate taxes and mining royalties.<br> Federal transfers are adjusted downward by $372 million. This adjustment is due in part to the pace of completion of federally funded infrastructure projects.<sup>3</sup> Expenditures are adjusted downward by $2.2 billion since Budget 2026-2027. They now stand at $166.0 billion with annual growth of 2.9%.<br> Portfolio expenditures are adjusted downward by $2.2 billion, taking into account expenditures that were projected but not incurred, mainly due to lower operating expenditures, and to a lesser extent the slower-than-anticipated pace of completion of subsidized infrastructure projects, as well as measures taken during the year to ensure more efficient and targeted management of spending across all portfolios. These expenditures therefore show annual growth of 3.0%, whereas 4.5% growth was forecast in Budget 2026-2027.<br> Debt service is adjusted downward by $6 million.<br> Moreover, the budgetary deficit within the meaning of the *Balanced Budget Act*, that is, after taking into account deposits of dedicated revenues of $2.3 billion in the Generations Fund, stands at $7.2 billion.<br> **> Additional information** <br> The net debt burden stood at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. This decline is primarily due to a lower-than-expected deficit. |
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| ![](exhibit99-3xu004.jpg) | ____________________________________ |
| ![](exhibit99-3xu004.jpg) | 3. Adjustments to federal transfer revenue based on the pace of infrastructure projects that receive federal funding have no impact on the budgetary balance, since an offsetting entry is recorded under expenditures. |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 4 \| 23

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| ![](exhibit99-3xu007.jpg) | **Revenue**<br>**Own-source revenue** |
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| ![](exhibit99-3xu007.jpg) | **> Preliminary results as at March 31, 2026**<br>Own-source revenue for 2025-2026 stood at $130.9 billion. This represents an increase of $5.3 billion (4.2%) compared to the same period the previous year. <br> **Tax revenue** increased by $6.5 billion (6.6%), to $103.9 billion, due in particular to an increase of:<br> $3.3 billion (7.1%) in **personal income tax**, attributable in part to wages and salaries, which grew by 4.5% growth in 2025, an increase in instalment payments related to 2025 tax returns, and the impact of financial market performance on taxpayers' capital gains in 2025;<br> $442 million (5.0%) in **contributions for health services**, mainly attributable to wages and salaries, which grew by 4.5% in 2025;<br> $1.3 billion (10.0%) in **corporate tax** revenue, linked to a 4.7% rise in the net operating surplus of corporations in 2025 and an increase in corporate instalment payments, driven by the strong performance of financial markets and the mining sector in 2025;<br> $47 million (3.9%) in **school property tax**, due to changes in local needs funding, which takes into account the projected growth in the number of students and in the cost of goods and services funded by school property tax;<br> $1.4 billion (4.9%) in **consumption taxes**, mainly due to household consumption, which grew by 4.4% in 2025, and due to investments in residential construction, which rose by 14.1% during the same period. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 5 \| 23

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| ![](exhibit99-3xu007.jpg) | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. | **Other own-source revenue** decreased by $705 billion (-3.1%) to $21.7 billion, due to:<br> a $493-million (8.0%) increase in **duties, permits and royalties**, stemming in part from an increase in mining royalties due to a good performance by gold mining companies, driven by historic highs in prices;<br> a $1.2-billion (-7.4%) decrease in **miscellaneous revenue**, attributable in part to the non-recurrence of a significant portion of the $1.7 billion received in 2024-2025 to offset health costs related to smoking under the plan of arrangement between tobacco companies and their creditors.<br> **Revenue from government enterprises** decreased by $448 million (-7.9%) to $5.2 billion.<br> This change is largely attributable to the decrease in earnings from Hydro-Québec, mainly due to low runoff, which led to a reduction in short-term sales in export markets and an increase in electricity purchases.<br> This decrease is partially offset by an increase in Investissement Québec's earnings, due, in particular, to higher stock market prices. |
| ![](exhibit99-3xu007.jpg) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) | **Own-source revenue**<br>(unaudited data, millions of dollars, year-over-year change) |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** |
| ![](exhibit99-3xu007.jpg) |  | **2024-<br>2025** | **2025-<br>2026** | **Change**<br>**(M$)** | ***Change<br>(%)*** | **Level<br>(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level<br>(M$)** | ***Change<br>(%)*** |
| ![](exhibit99-3xu007.jpg) | Income and <br>property taxes |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu007.jpg) | - Personal income tax | 45 689 | 48 948 | 3 259 | *7.1* | 49 003 | *7.3* | -55 | 48 948 | *7.1* |
| ![](exhibit99-3xu007.jpg) | - Contributions for<br>health services | 8 852 | 9 294 | 442 | *5.0* | 9 175 | *3.6* | 119 | 9 294 | *5.0* |
| ![](exhibit99-3xu007.jpg) | - Corporate taxes | 13 344 | 14 675 | 1 331 | *10.0* | 14 102 | *5.7* | 573 | 14 675 | *10.0* |
| ![](exhibit99-3xu007.jpg) | - School property tax | 1 196 | 1 243 | 47 | *3.9* | 1 255 | *4.9* | -12 | 1 243 | *3.9* |
| ![](exhibit99-3xu007.jpg) | Consumption taxes | 28 377 | 29 769 | 1 392 | *4.9* | 29 364 | *3.5* | 405 | 29 769 | *4.9* |
| ![](exhibit99-3xu007.jpg) | **Tax revenue** | **97 458** | **103 929** | **6 471** | ***6.6*** | **102 899** | ***5.6*** | **1 030** | **103 929** | ***6.6*** |
| ![](exhibit99-3xu007.jpg) | Duties, permits and royalties | 6 191 | 6 684 | 493 | *8.0* | 6 311 | *1.9* | 373 | 6 684 | *8.0* |
| ![](exhibit99-3xu007.jpg) | Miscellaneous revenue | 16 252 | 15 054 | -1 198 | *-7.4* | 15 395 | *-5.3* | -341 | 15 054 | *-7.4* |
| ![](exhibit99-3xu007.jpg) | **Other own-source revenue** | **22 443** | **21 738** | **-705** | ***-3.1*** | **21 706** | ***-3.3*** | 32 | **21 738** | ***-3.1*** |
| ![](exhibit99-3xu007.jpg) | **Total own-source revenue** **excluding revenue from government enterprises** | **119 901** | **125 667** | **5 766** | ***4.8*** | **124 605** | ***3.9*** | **1 062** | **125 667** | ***4.8*** |
| ![](exhibit99-3xu007.jpg) | Revenue from <br>government enterprises | 5 689 | 5 241 | -447 | *-7.9* | 5 347 | *-6.0* | -106 | 5 241 | *-7.9* |
| ![](exhibit99-3xu007.jpg) | **TOTAL** | **125 590** | **130 908** | **5 319** | ***4.2*** | **129 952** | ***3.5*** | **956** | **130 908** | ***4.2*** |
| ![](exhibit99-3xu007.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 6 \| 23

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| ![](exhibit99-3xu007.jpg) | **> Adjustments since the Budget 2026-2027**<br>Own-source revenue stood at $130.9 billion in 2025-2026, an upward adjustment of $956 million compared to the 2026-2027 budget forecast.<br> **Tax revenue** is adjusted upward by $1.0 billion in 2025-2026. This adjustment is mainly due to:<br> the $55-million downward adjustment to **personal income tax,** attributable to higher-than-expected growth in refunds in connection with the processing of 2025 tax returns, offset by an upward adjustment to wages and salaries in the first quarter of 2026;<br> the $119-million upward adjustment to **contributions for health services**, attributable in part to the upward adjustment to wages and salaries in the first quarter of 2026;<br> the $573-million upward adjustment to **corporate taxes**, attributable to an increase in receipts from the mining sector driven by historic highs in gold prices;<br> the $405-million upward adjustment to **consumption taxes**, attributable to a 0.4-percentage-point upward adjustment to household consumption in 2025 and an increase in QST collected from selected listed financial institutions.<br> **Other own-source revenue** is adjusted upward by $32 million in 2025-2026. This adjustment is mainly due to:<br> a $373-million increase in **duties, permits and royalties**, stemming from an upward adjustment to mining royalties due to a good performance by gold mining companies, driven by historic highs in gold prices;<br> a $341-million decrease in **miscellaneous revenue**, attributable to lower-than-expected services rendered, including in the health sector.<br> **Revenue from government enterprises** is adjusted downward by $106 million, largely attributable to decreased revenues from Hydro-Québec, mainly due to cold winter temperatures, which led to a reduction in short-term sales in export markets and an increase in electricity purchases to meet high demand. |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 7 \| 23

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| ![](exhibit99-3xu007.jpg) | **Composition of own-source revenue excluding revenue from government enterprise**<br> Own-source revenue excluding revenue from government enterprises consists mainly of tax revenue, that is, personal income tax, contributions for health services, corporate taxes, school property tax and consumption taxes<br> Changes in own-source revenue generally reflect changes in economic activity in Québec and modifications in the tax system Own-source revenue excluding revenue from government enterprises also includes other sources of revenue<br> duties, permits and royalties, in particular revenue from the carbon market;<br> miscellaneous revenue, such as investment revenue, services rendered, as well as penalties, fines and recoveries. |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Composition of revenue from government enterprises**<br> Government enterprises consist of public corporations that play a commercial role, have managerial autonomy and are financially self-sufficient.<br> Revenue from government enterprises corresponds in large part to the net earnings of these enterprises. |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Own-source revenue as at March 31, 2026**<br>(billions of dollars and percentage of total own-source revenue) |
| ![](exhibit99-3xu007.jpg) | ![](exhibit99-3xu020.jpg) |
| ![](exhibit99-3xu007.jpg) | Note: Totals may not add due to rounding. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 8 \| 23

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![](exhibit99-3xu007.jpg) | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** | **Revenue**<br> **Federal transfers** |
| ![](exhibit99-3xu007.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu007.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) | ![](exhibit99-3xu008.jpg) |
| ![](exhibit99-3xu007.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu007.jpg) | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. | **> Preliminary results as at March 31, 2026**<br>Federal transfers totalled $30.2 billion for 2025-2026. This represents a decrease of $293 million (-1.0%) compared with the same period the previous year. This change is largely explained by the non-recurrence of the reimbursement of Québec's costs related to refugee protection claimants, announced by the federal government in June 2024. |
| ![](exhibit99-3xu007.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu007.jpg) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) | **Federal transfers**<br>(unaudited data, millions of dollars, year-over-year change) |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary** <br>**results<sup>(1)</sup>** | **Preliminary** <br>**results<sup>(1)</sup>** | **Preliminary** <br>**results<sup>(1)</sup>** |
| ![](exhibit99-3xu007.jpg) |  | **2024-<br>2025** | **2025-<br>2026** | **Change**<br>**(M$)** | ***Change<br>(%)*** | **Level<br>(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level<br>(M$)** | ***Change<br>(%)*** |
| ![](exhibit99-3xu007.jpg) | Equalization | 13 316 | 13 567 | 251 | *1.9* | 13 567 | *1.9* |  | 13 567 | *1.9* |
| ![](exhibit99-3xu007.jpg) | Health transfers | 8 432 | 8 661 | 229 | *2.7* | 8 685 | *3.0* | -24 | 8 661 | *2.7* |
| ![](exhibit99-3xu007.jpg) | Transfers for <br>post-secondary education and other social programs | 1 350 | 1 300 | -50 | *-3.7* | 1 315 | *-2.6* | -15 | 1 300 | *-3.7* |
| ![](exhibit99-3xu007.jpg) | Other programs | 7 400 | 6 677 | -723 | *-9.8* | 7 010 | *-5.3* | -333 | 6 677 | *-9.8* |
| ![](exhibit99-3xu007.jpg) | **TOTAL** | **30 498** | **30 205** | **-293** | ***-1.0*** | **30 577** | ***0.3*** | **-372** | **30 205** | ***-1.0*** |
| ![](exhibit99-3xu007.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 9 \| 23

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| ![](exhibit99-3xu007.jpg) | **>** **Adjustments since the Budget 2026-2027**<br>Revenue from federal transfers stood at $30.2 billion in 2025-2026, a downward adjustment of $372 million compared to the 2026-2027 budget forecast. This decrease is due to the pace of federally funded infrastructure projects<sup>4</sup> and, to a lesser extent, an upward adjustment to the value of the special Québec abatement, which reduces cash transfers to Québec.<sup>5</sup> |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Composition of federal transfer**<br> Revenue from federal transfers consists of federal government revenues paid to Québec under the *Federal-Provincial Fiscal Arrangements Act*, in addition to revenues from other programs under bilateral agreements<br> These revenues mainly come from<br> the equalization program;<br> the Canada Health Transfer (CHT);<br> the Canada Social Transfer (CST);<br> other programs resulting from agreements with the federal government in various fields (e.g.: immigrant integration, early learning and childcare, labour market and infrastructure). |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Federal transfers as at March 31, 2026**<br> (billions of dollars and percentage of total revenue from federal transfers) |
| ![](exhibit99-3xu007.jpg) | ![](exhibit99-3xu017.jpg) |
| ![](exhibit99-3xu007.jpg) | Note: Totals may not add due to rounding. |
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| ![](exhibit99-3xu007.jpg) | ______________________________________ |
| ![](exhibit99-3xu007.jpg) | 4. Adjustments to federal transfer revenue based on the pace of infrastructure projects that receive federal funding have no impact on the budgetary balance, since an offsetting entry is recorded under expenditures <br> 5. The value of the Québec special abatement is shown as a deduction of federal transfers. |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 10 \| 23

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| ![](exhibit99-3xu007.jpg) | **Expenditure**<br> **Portfolio expenditures and debt service**<br>|
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | ![](exhibit99-3xu010.jpg) |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **> Preliminary results as at March 31, 2026**<br>Expenditures totalled $166.0 billion for 2025-2026. This represents an increase of $4.7 billion (2.9%) compared to the same period the previous year.<br> **Portfolio expenditures** increased by $4.6 billion (3.0%) to $155.9 billion. The growth observed as at March 31 is attributable to expected changes in the costs of delivering public services, as well as the following factors:<br> expenditures in the **Santé et Services sociaux** portfolio increased by $1.7 billion (2.6%) to $65.9 billion. This increase is due in particular to changes in compensation and expenditures related to drugs;<br> expenditures in the **Éducation** portfolio increased by $180 million (0.8%) to $23.5 billion. This increase is due in particular to changes in the compensation of staff at school service centres and school boards, resulting from an increase in teaching staff in response to the increase in the number of students, and from salary indexations;<br> expenditures in the **Enseignement supérieur** portfolio decreased by $237 million (-2.1%) to $11.1 billion. This decrease is due in particular to lower subsidies for private university infrastructure projects, reflecting a lower level of construction activity than in 2024-2025;<br> expenditures in the **Famille** portfolio increased by $676 million (7.5%) to $9.7 billion. This increase is mainly due to lower expenditures in 2024-2025 as a result of advance payments in 2023-2024 to fund subsidized educational childcare services. It is also due to the creation of new subsidized daycare spots and the conversion of unsubsidized spots into subsidized spots;<br> expenditures in the **Transports et Mobilité durable** portfolio increased by $1.5 billion (19.7%) to $9.2 billion. This increase is due in particular to advance payments for public transit infrastructure projects;  |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 11 \| 23

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**Expenditure**

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| ![](exhibit99-3xu007.jpg) | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. | expenditures in the **Emploi et Solidarité sociale** portfolio increased by $98 million (1.7%) to $5.8 billion. This increase is due in particular to the adjustment to the provision for doubtful accounts, driven mainly by a rise in outstanding receivables related to last-resort financial assistance;<br> expenditures in the **Affaires municipales et Habitation** portfolio increased by $296 million (5.9%) to $5.3 billion. This change is due in part to higher subsidies for affordable housing;<br> expenditures in the **Économie, Innovation et Énergie** portfolio decreased by $363 million (-7.6%) to $4.4 billion. This decrease is mainly due to lower permanent declines in value and provisions for losses in the Economic Development Fund than in 2024-2025;<br> expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio decreased by $331 million (-15.2%) to $1.9 billion. This change is attributable in part to lower subsidies of the Roulez vert program due to lower sales of new electric vehicles and the gradual reduction in the financial assistance provided by the program;<br> expenditure in **other portfolios** increased by $1.1 billion (5.9%) to $19.0 billion.<br> **Debt service** expenditures increased by $180 million (1.8%) to $10.1 billion. This increase is due in particular to the higher debt level. |
| ![](exhibit99-3xu007.jpg) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) | **Expenditure**<br>(unaudited data, millions of dollars, year-over-year change) |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu007.jpg) |  | **April to March** | **April to March** | **April to March** | **April to March** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** |
| ![](exhibit99-3xu007.jpg) |  | **2024-2025** | **2025-2026** | **Change (M$)** | ***Change (%)*** | **Level**<br>**(M$)** | **Change**<br>**(%)** | **Adjustment (M$)** | **Level**<br>**(M$)** | ***Change***<br>***(%)*** |
| ![](exhibit99-3xu007.jpg) | Santé et Services sociaux | 64 227 | 65 899 | 1 672 | *2.6* | 65 991 | *2.7* | -92 | 65 899 | *2.6* |
| ![](exhibit99-3xu007.jpg) | Éducation | 23 352 | 23 532 | 180 | *0.8* | 23 516 | *0.7* | 16 | 23 532 | *0.8* |
| ![](exhibit99-3xu007.jpg) | Enseignement supérieur | 11 382 | 11 145 | -237 | *-2.1* | 11 335 | *-0.4* | -190 | 11 145 | *-2.1* |
| ![](exhibit99-3xu007.jpg) | Famille | 9 015 | 9 691 | 676 | *7.5* | 9 741 | *8.1* | -50 | 9 691 | *7.5* |
| ![](exhibit99-3xu007.jpg) | Transports et <br>Mobilité durable | 7 684 | 9 194 | 1 510 | *19.7* | 9 262 | *20.5* | -68 | 9 194 | *19.7* |
| ![](exhibit99-3xu007.jpg) | Emploi et <br>Solidarité sociale | 5 707 | 5 805 | 98 | *1.7* | 5 803 | *1.7* | 2 | 5 805 | *1.7* |
| ![](exhibit99-3xu007.jpg) | Affaires municipales<br>et Habitation | 5 005 | 5 301 | 296 | *5.9* | 5 758 | *15.0* | -457 | 5 301 | *5.9* |
| ![](exhibit99-3xu007.jpg) | Économie, Innovation<br>et Énergie | 4 768 | 4 405 | -363 | *-7.6* | 4 867 | *2.1* | -462 | 4 405 | *-7.6* |
| ![](exhibit99-3xu007.jpg) | Environnement, Lutte contre les changements climatiques, Faune <br>et Parcs | 2 181 | 1 850 | -331 | *-15.2* | 1 989 | *-8.8* | -139 | 1 850 | *-15.2* |
| ![](exhibit99-3xu007.jpg) | Other portfolios | 17 973 | 19 038 | 1 065 | *5.9* | 19 767 | *10.0* | -729 | 19 038 | *5.9* |
| ![](exhibit99-3xu007.jpg) | **Portfolio expenditures** | **151 294** | **155 860** | **4 566** | ***3.0*** | **158 029** | ***4.5*** | **-2 169** | **155 860** | ***3.0*** |
| ![](exhibit99-3xu007.jpg) | **Debt service** | **9 969** | **10 149** | **180** | ***1.8*** | **10 155** | ***1.9*** | **-6** | **10 149** | ***1.8*** |
| ![](exhibit99-3xu007.jpg) | **TOTAL** | **161 263** | **166 009** | **4 746** | ***2.9*** | **168 184** | ***4.3*** | **-2 175** | **166 009** | ***2.9*** |
| ![](exhibit99-3xu007.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  |
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| ![](exhibit99-3xu007.jpg) | **> Adjustments since the Budget 2026-2027**<br>Expenditures stood at $166.0 billion in 2025-2026, a downward adjustment of $2.2 billion compared to the 2026-2027 budget forecast.<br> **Portfolio expenditures** are adjusted downward by $2.2 billion, taking into account expenditures that were projected but not incurred, mainly due to lower operating expenditures, and to a lesser extent the slower-than-anticipated pace of completion of subsidized infrastructure projects, as well as measures taken during the year to ensure more efficient and targeted management of spending across all portfolios. These expenditures therefore show annual growth of 3.0%, whereas 4.5% growth was forecast in Budget 2026-2027.<br> Expenditures in the **Santé et Services sociaux** portfolio are adjusted downward by $92 million. This adjustment is due in particular to pension plan expenses coming in below actuarial forecasts. Expenditures in the **Enseignement supérieur** portfolio are adjusted downward by $190 million. This adjustment is due in particular to lower-than-expected expenses in higher education institutions and for student financial assistance. Expenditures in the **Famille** portfolio are adjusted downward by $50 million. This adjustment is mainly due to lower-than-expected expenditures by the Educational Childcare Services Fund. Expenditures in the **Transports et Mobilité durable** portfolio are adjusted downward by $68 million. This adjustment is due in particular to lower expenditures by the Highway Safety Fund and the Société de l'assurance automobile du Québec. Expenditures in the **Affaires municipales et Habitation** portfolio are adjusted downward by $457 million. This adjustment is due in part to the slower-than-anticipated pace of subsidized infrastructure projects. Expenditures in the **Économie, Innovation et Énergie** portfolio are adjusted downward by $462 million. This adjustment is mainly attributable to lower expenses for the Economic Development Fund and lower tax credit costs, particularly the tax credits for investment and innovation and for salaries and wages for research and development. Expenditures in the **Environnement, Lutte contre les changements climatiques, Faune et Parcs** portfolio are adjusted downward by $139 million. This adjustment is attributable in part to lower expenses from the Electrification and Climate Change Fund. Expenditures in **other portfolios** are adjusted downward by $729 million, mainly due to the effect of expenditures that were centrally provisioned in the Contingency Fund in the budget. The Contingency Fund is intended to cover unforeseen expenditures that may arise in any government program. The majority of these provisions were allocated to other portfolios during the year, based on their needs.<br>**Debt service** is adjusted downward by $6 million. |

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| ![](exhibit99-3xu007.jpg) | **Composition of portfolio expenditures**<br> Portfolio expenditures represent all resources allocated to the delivery of public services. The government implements programs that are administered directly by government entities such as departments and organizations.<br> Programs and entities under a minister's responsibility constitute a portfolio. Portfolio expenditures are made up of:<br> program expenditures;<br> expenditures incurred notably by special funds, non-budget-funded bodies, as well as bodies in the health and social services, education and higher education networks;<br> tax-funded expenditures, which consist of refundable tax credits and the expenditure for doubtful accounts associated with tax revenues.<br> The composition and expenditure level of each portfolio vary according to the nature of the function and programs under the minister's responsibility. As a result, some portfolios will incur more expenses than others, depending on their mission.<br> In 2025-2026, there are 25 ministerial portfolios. The three main ones, Santé et Services sociaux, Éducation, and Enseignement supérieur, account for 65% of portfolio expenditures. |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Composition of debt service**<br> Debt service represents the sum of interest on direct debt and interest on other employee future benefits liabilities in the public and parapublic sectors.<br> It depends in particular on the size of the debt and interest rates on financial markets. Each year, the government must devote a portion of its revenues to making interest payments. |
| ![](exhibit99-3xu007.jpg) |  |
| ![](exhibit99-3xu007.jpg) | **Expenditure as at March 31, 2026**<br>(billions of dollars and percentage of total expenditure) |
| ![](exhibit99-3xu007.jpg) | ![](exhibit99-3xu021.jpg) |
| ![](exhibit99-3xu007.jpg) | Note: Totals may not add due to rounding. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 14 \| 23

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| ![](exhibit99-3xu012.jpg) | **Debt** | **Debt** | **Debt** | **Debt** |
| ![](exhibit99-3xu012.jpg) |  |  |  |  |
| ![](exhibit99-3xu012.jpg) | As at March 31, 2026, net debt stands at $245.3 billion, which is $5.0 billion lower than forecast in Budget 2026-2027. The net debt burden stands at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. This downward adjustment is primarily due to an accounting deficit lower than forecast in Budget 2026-2027. | As at March 31, 2026, net debt stands at $245.3 billion, which is $5.0 billion lower than forecast in Budget 2026-2027. The net debt burden stands at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. This downward adjustment is primarily due to an accounting deficit lower than forecast in Budget 2026-2027. | As at March 31, 2026, net debt stands at $245.3 billion, which is $5.0 billion lower than forecast in Budget 2026-2027. The net debt burden stands at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. This downward adjustment is primarily due to an accounting deficit lower than forecast in Budget 2026-2027. | As at March 31, 2026, net debt stands at $245.3 billion, which is $5.0 billion lower than forecast in Budget 2026-2027. The net debt burden stands at 38.0% of GDP as at March 31, 2026, a 0.8 percentage point lower than forecast in Budget 2026-2027. This downward adjustment is primarily due to an accounting deficit lower than forecast in Budget 2026-2027. |
| ![](exhibit99-3xu012.jpg) |  |  |  |  |
| ![](exhibit99-3xu012.jpg) | **Net debt as at March 31, 2026**<br>(millions of dollars, unless otherwise indicated) | **Net debt as at March 31, 2026**<br>(millions of dollars, unless otherwise indicated) | **Net debt as at March 31, 2026**<br>(millions of dollars, unless otherwise indicated) | **Net debt as at March 31, 2026**<br>(millions of dollars, unless otherwise indicated) |
| ![](exhibit99-3xu012.jpg) |  | **March 2026 budget** | **Adjustment** | **Preliminary** <br>**results<sup>(1)</sup>** |
| ![](exhibit99-3xu012.jpg) | **NET DEBT, BEGINNING OF YEAR** | **236 163** | **-** | **236 163** |
| ![](exhibit99-3xu012.jpg) | ***% OF GDP*** | ***38.3*** | **-** | ***38.3*** |
| ![](exhibit99-3xu012.jpg) | Accounting deficit (surplus) | 7 655 | -2 759 | 4 896 |
| ![](exhibit99-3xu012.jpg) | Capital investments | 8 105 | -1 384 | 6 721 |
| ![](exhibit99-3xu012.jpg) | Accounting adjustment | -1 634 | -811 | -2 445 |
| ![](exhibit99-3xu012.jpg) | **Total change** | **14 126** | **-4 954** | **9 172** |
| ![](exhibit99-3xu012.jpg) | **NET DEBT, END OF YEAR** | **250 289** | **-4 954** | **245 335** |
| ![](exhibit99-3xu012.jpg) | ***% OF GDP*** | ***38.8*** | ***-0.8*** | ***38.0*** |
| ![](exhibit99-3xu012.jpg) | (1) Preliminary results according to the information available as at June 1 , 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1 , 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1 , 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. | (1) Preliminary results according to the information available as at June 1 , 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*. |
| ![](exhibit99-3xu012.jpg) |  |  |  |  |
| ![](exhibit99-3xu012.jpg) | As at March 31, 2026, Québec's net debt burden stood at 38.0% of GDP, compared with the provincial average of 30.2%.<sup>6</sup> | As at March 31, 2026, Québec's net debt burden stood at 38.0% of GDP, compared with the provincial average of 30.2%.<sup>6</sup> | As at March 31, 2026, Québec's net debt burden stood at 38.0% of GDP, compared with the provincial average of 30.2%.<sup>6</sup> | As at March 31, 2026, Québec's net debt burden stood at 38.0% of GDP, compared with the provincial average of 30.2%.<sup>6</sup> |
| ![](exhibit99-3xu012.jpg) | **Net debt of governments in Canada as at March 31, 2026**<br>(percentage of GDP) | **Net debt of governments in Canada as at March 31, 2026**<br>(percentage of GDP) | **Net debt of governments in Canada as at March 31, 2026**<br>(percentage of GDP) | **Net debt of governments in Canada as at March 31, 2026**<br>(percentage of GDP) |
| ![](exhibit99-3xu012.jpg) | ![](exhibit99-3xu019.jpg) | ![](exhibit99-3xu019.jpg) | ![](exhibit99-3xu019.jpg) | ![](exhibit99-3xu019.jpg) |
| ![](exhibit99-3xu012.jpg) | (1) GDP weighted average.<br>(2) GDP weighted average excluding the least indebted province, Alberta, and the most indebted province, Newfoundland and Labrador. | (1) GDP weighted average.<br>(2) GDP weighted average excluding the least indebted province, Alberta, and the most indebted province, Newfoundland and Labrador. | (1) GDP weighted average.<br>(2) GDP weighted average excluding the least indebted province, Alberta, and the most indebted province, Newfoundland and Labrador. | (1) GDP weighted average.<br>(2) GDP weighted average excluding the least indebted province, Alberta, and the most indebted province, Newfoundland and Labrador. |
| ![](exhibit99-3xu012.jpg) | Sources: Governments budget documents. | Sources: Governments budget documents. | Sources: Governments budget documents. | Sources: Governments budget documents. |
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| ![](exhibit99-3xu012.jpg) | ________________________________________ | ________________________________________ | ________________________________________ | ________________________________________ |
| ![](exhibit99-3xu012.jpg) | 6. Provincial average as at March 31, 2025 was 28.9%. | 6. Provincial average as at March 31, 2025 was 28.9%. | 6. Provincial average as at March 31, 2025 was 28.9%. | 6. Provincial average as at March 31, 2025 was 28.9%. |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 15 \| 23

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| | | | |
|:---|:---|:---|:---|
| ![](exhibit99-3xu012.jpg) | **Net financial surpluses or requirements** | **Net financial surpluses or requirements** | **Net financial surpluses or requirements** |
| ![](exhibit99-3xu012.jpg) |  |  |  |
| ![](exhibit99-3xu012.jpg) | For the period April 2025 to March 2026, net financial requirements amount to $18.3 billion and are attributable to:<br> the $4.9-billion accounting deficit resulting from the difference between government revenue and expenditure; the $1.7-billion financial requirements for investments, loans and advances, stemming in particular from the acquisition of new investments by the Economic Development Fund and the Natural Resources and Energy Capital Fund; the $6.7-billion financial requirements related to government capital assets, mainly due to investments of $12.9 billion, notably for the refurbishment and construction of schools and healthcare facilities. These investments are partially offset by amortization expenses of $5.9 billion;<sup>7</sup> the $4.1-billion financial requirements related to the liability for retirement plans and other future benefits, resulting from the payment of government employee benefits of $8.2 billion, offset by the net cost of the plans of $4.7 billion;<sup>7</sup> the $1.4-billion financial surpluses from other accounts,<sup>8</sup> stemming in particular from the receipt of amounts associated with the plan of arrangement for Canadian lawsuits against tobacco companies; the $2.3-billion financial requirements generated by deposits in the Generations Fund. | For the period April 2025 to March 2026, net financial requirements amount to $18.3 billion and are attributable to:<br> the $4.9-billion accounting deficit resulting from the difference between government revenue and expenditure; the $1.7-billion financial requirements for investments, loans and advances, stemming in particular from the acquisition of new investments by the Economic Development Fund and the Natural Resources and Energy Capital Fund; the $6.7-billion financial requirements related to government capital assets, mainly due to investments of $12.9 billion, notably for the refurbishment and construction of schools and healthcare facilities. These investments are partially offset by amortization expenses of $5.9 billion;<sup>7</sup> the $4.1-billion financial requirements related to the liability for retirement plans and other future benefits, resulting from the payment of government employee benefits of $8.2 billion, offset by the net cost of the plans of $4.7 billion;<sup>7</sup> the $1.4-billion financial surpluses from other accounts,<sup>8</sup> stemming in particular from the receipt of amounts associated with the plan of arrangement for Canadian lawsuits against tobacco companies; the $2.3-billion financial requirements generated by deposits in the Generations Fund. | For the period April 2025 to March 2026, net financial requirements amount to $18.3 billion and are attributable to:<br> the $4.9-billion accounting deficit resulting from the difference between government revenue and expenditure; the $1.7-billion financial requirements for investments, loans and advances, stemming in particular from the acquisition of new investments by the Economic Development Fund and the Natural Resources and Energy Capital Fund; the $6.7-billion financial requirements related to government capital assets, mainly due to investments of $12.9 billion, notably for the refurbishment and construction of schools and healthcare facilities. These investments are partially offset by amortization expenses of $5.9 billion;<sup>7</sup> the $4.1-billion financial requirements related to the liability for retirement plans and other future benefits, resulting from the payment of government employee benefits of $8.2 billion, offset by the net cost of the plans of $4.7 billion;<sup>7</sup> the $1.4-billion financial surpluses from other accounts,<sup>8</sup> stemming in particular from the receipt of amounts associated with the plan of arrangement for Canadian lawsuits against tobacco companies; the $2.3-billion financial requirements generated by deposits in the Generations Fund. |
| ![](exhibit99-3xu012.jpg) |  |  |  |
| ![](exhibit99-3xu012.jpg) | **Net financial surpluses or requirements**<br>(unaudited data, millions of dollars) | **Net financial surpluses or requirements**<br>(unaudited data, millions of dollars) | **Net financial surpluses or requirements**<br>(unaudited data, millions of dollars) |
| ![](exhibit99-3xu012.jpg) |  | **April to March** | **April to March** |
| ![](exhibit99-3xu012.jpg) |  | **2024-2025** | **2025-2026** |
| ![](exhibit99-3xu012.jpg) | **ACCOUNTING SURPLUS (DEFICIT)** | **-5 175** | **-4 896** |
| ![](exhibit99-3xu012.jpg) | **Non-budgetary transactions** |  |  |
| ![](exhibit99-3xu012.jpg) | Investments, loans and advances | -1 850 | -1 749 |
| ![](exhibit99-3xu012.jpg) | Capital investments | -9 887 | -6 721 |
| ![](exhibit99-3xu012.jpg) | Retirement plans and other employee future benefits | -2 939 | -4 050 |
| ![](exhibit99-3xu012.jpg) | Other accounts<sup>(1)</sup> | 2 443 | 1 422 |
| ![](exhibit99-3xu012.jpg) | Deposits in the Generations Fund | -2 797 | -2 289 |
| ![](exhibit99-3xu012.jpg) | **Total non-budgetary transactions** | **-15 030** | **-13 387** |
| ![](exhibit99-3xu012.jpg) | **NET FINANCIAL SURPLUSES (REQUIREMENTS)** | **-20 205** | **-18 283** |
| ![](exhibit99-3xu012.jpg) | (1) The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month. | (1) The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month. | (1) The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month. |
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| ![](exhibit99-3xu012.jpg) | _____________________________________ | _____________________________________ | _____________________________________ |
| ![](exhibit99-3xu012.jpg) | 7. These items, which are included in the government's budgetary surplus (deficit), are eliminated in non-budgetary transactions because they have no effect on cash flow.<br> 8. The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month.  | 7. These items, which are included in the government's budgetary surplus (deficit), are eliminated in non-budgetary transactions because they have no effect on cash flow.<br> 8. The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month.  | 7. These items, which are included in the government's budgetary surplus (deficit), are eliminated in non-budgetary transactions because they have no effect on cash flow.<br> 8. The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months' remittances can be collected in a given month.  |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 16 \| 23

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| ![](exhibit99-3xu012.jpg) | **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on the accrual basis of accounting.<br> Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur. Net financial surpluses or requirements, on the other hand, consist of the difference between receipts and disbursements resulting from government activities. To meet its net financial requirements, the government uses a variety of financing sources, including cash and borrowings.<br> The various items for net financial requirements represent net receipts and disbursements generated by the government's loans, interests in its enterprises, and fixed assets, by retirement plans and other employee future benefits, as well as by other accounts.<br> This last item includes the payment of accounts payable and the collection of accounts receivable. Deposits in the Generations Fund also result in financial requirements. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 17 \| 23

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| ![](exhibit99-3xu012.jpg) | **Financing program and borrowings** | **Financing program and borrowings** | **Financing program and borrowings** |
| ![](exhibit99-3xu012.jpg) |  |  |  |
| ![](exhibit99-3xu012.jpg) | The financing program consists of long-term borrowings contracted during the fiscal year. Among other things, the program is used to repay maturing borrowings and meet net financial requirements. The latter mainly comprise the budgetary deficit as well as the government's capital investments.<br> Borrowings contracted for 2025-2026 stood at $32.1 billion.<sup>9</sup> Conventional bonds in Canadian dollars were the main debt instrument used.<br> Borrowings on foreign markets accounted for 47% of borrowings issued in 2025-2026. | The financing program consists of long-term borrowings contracted during the fiscal year. Among other things, the program is used to repay maturing borrowings and meet net financial requirements. The latter mainly comprise the budgetary deficit as well as the government's capital investments.<br> Borrowings contracted for 2025-2026 stood at $32.1 billion.<sup>9</sup> Conventional bonds in Canadian dollars were the main debt instrument used.<br> Borrowings on foreign markets accounted for 47% of borrowings issued in 2025-2026. | The financing program consists of long-term borrowings contracted during the fiscal year. Among other things, the program is used to repay maturing borrowings and meet net financial requirements. The latter mainly comprise the budgetary deficit as well as the government's capital investments.<br> Borrowings contracted for 2025-2026 stood at $32.1 billion.<sup>9</sup> Conventional bonds in Canadian dollars were the main debt instrument used.<br> Borrowings on foreign markets accounted for 47% of borrowings issued in 2025-2026. |
| ![](exhibit99-3xu012.jpg) |  |  |  |
| ![](exhibit99-3xu012.jpg) |  |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**Summary of long-term borrowings contracted in 2025-2026<sup>(1)</sup>** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**Currencies** | **$million** | **%** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**CANADIAN DOLLAR** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Conventional bonds | 15 186 | 47.3 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Floating-rate notes | 1 500 | 4.7 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Savings products issued by Épargne Placements Québec | 179 | 0.6 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Immigrant investors<sup>(2)</sup> | 4 |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | **16 868** | **52.6** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**OTHER CURRENCIES** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;U.S. dollar | 8 972 | 28.0 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Euro | 4 669 | 14.6 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Australian dollar | 798 | 2.5 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Swiss franc | 765 | 2.4 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | **15 205** | **47.4** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**TOTAL** | **32 073** | **100.0** |
| ![](exhibit99-3xu012.jpg) | Notes: Long-term borrowings issued between April 1, 2025 and March 31, 2026.<br> Totals may not add due to rounding.<br> (1) An updated list of <u>new borrowings for the 2025-2026 fiscal year</u> is available.<br> (2) These borrowings come from sums advanced by immigrant investors. These sums are loaned to the government through Investissement Québec. | Notes: Long-term borrowings issued between April 1, 2025 and March 31, 2026.<br> Totals may not add due to rounding.<br> (1) An updated list of <u>new borrowings for the 2025-2026 fiscal year</u> is available.<br> (2) These borrowings come from sums advanced by immigrant investors. These sums are loaned to the government through Investissement Québec. | Notes: Long-term borrowings issued between April 1, 2025 and March 31, 2026.<br> Totals may not add due to rounding.<br> (1) An updated list of <u>new borrowings for the 2025-2026 fiscal year</u> is available.<br> (2) These borrowings come from sums advanced by immigrant investors. These sums are loaned to the government through Investissement Québec. |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**Summary of long-trm borrowing repayments in 2025-2026** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**Currencies** |  | $**million** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**CANADIAN DOLLAR** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Conventional bonds |  | 10 202 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Other |  | 720 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** |  | **10 922** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**OTHER CURRENCIES** |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;U.S dollar |  | 5 084 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Euro |  | 4 123 |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;Others |  |  |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** |  | **9 207** |
| ![](exhibit99-3xu012.jpg) | &nbsp;&nbsp;**TOTAL** |  | **20 129** |
| ![](exhibit99-3xu012.jpg) | Note: Long-term borrowing repayments from April 1, 2025 to March 31, 2026. | Note: Long-term borrowing repayments from April 1, 2025 to March 31, 2026. |  |
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| ![](exhibit99-3xu012.jpg) | _____________________________________________ | _____________________________________________ |  |
| ![](exhibit99-3xu012.jpg) | 9. Long-term borrowings contracted between April 1, 2025 and March 31, 2026.  | 9. Long-term borrowings contracted between April 1, 2025 and March 31, 2026.  |  |

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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 18 \| 23

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**Preliminary results for 2025-2026 - Budgetary balance**

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| ![](exhibit99-3xu014.jpg) | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** | **Appendix 1: Preliminary results of 2025-2026** |
| ![](exhibit99-3xu014.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Budgetary balance**<br>(level and adjustment in millions of dollars, year-over-year percentage change) |
| ![](exhibit99-3xu014.jpg) | | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu014.jpg) | | **March 2025** <br>**budget** | **March 2025** <br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Adjustment<br>since the<br>March 2025<br>budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) | | **Level**<br> **(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level**<br> **(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level**<br> **(M$)** | ***Change<br>(%)*** | **Adjustment<br>since the<br>March 2025<br>budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) | **Revenue** |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | Own-source revenue | 125 732 | *1.0* | 4 220 | 129 952 | *3.5* | 956 | 130 908 | *4.2* | 5 176 |
| ![](exhibit99-3xu014.jpg) | Federal transfers | 30 610 | *-0.1* | -33 | 30 577 | *0.3* | -372 | 30 205 | *-1.0* | -405 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Revenue** | **156 342** | ***0.7*** | **4 187** | **160 529** | ***2.8*** | **584** | **161 113** | ***3.2*** | **4 771** |
| ![](exhibit99-3xu014.jpg) | **Expenditure** |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | Portfolio expenditures | -156 102 | *1.8* | -1 927 | -158 029 | *4.5* | 2 169 | -155 860 | *3.0* | 242 |
| ![](exhibit99-3xu014.jpg) | Debt service | -9 670 | *-1.9* | -485 | -10 155 | *1.9* | 6 | -10 149 | *1.8* | -479 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Expenditure** | **-165 772** | ***1.5*** | **-2 412** | **-168 184** | ***4.3*** | **2 175** | **-166 009** | **2.9** | **-237** |
| ![](exhibit99-3xu014.jpg) | Contingency reserve | -2 000 | *-* | 2 000 |  | *-* |  |  | *-* | 2 000 |
| ![](exhibit99-3xu014.jpg) | **ACCOUNTING SURPLUS (DEFICIT)** | **-11 430** | ***-*** | **3 775** | **-7 655** | ***-*** | **2 759** | **-4 896** | ***-*** | **6 534** |
| ![](exhibit99-3xu014.jpg) | Deposits of dedicated revenues in<br>the Generations Funds | -2 177 | *-* | -112 | -2 289 | *-* |  | -2 289 | *-* | -112 |
| ![](exhibit99-3xu014.jpg) | **BUDGETARY BALANCE<sup>(</sup>**<sup>**2**</sup><sup>**)**</sup> | **-13 607** | ***-*** | **3 663** | **-9 944** | ***-*** | **2 759** | **-7 185** | ***-*** | **6 422** |
| ![](exhibit99-3xu014.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.<br> (2) Budgetary balance within the meaning of the *Balanced Budget Act*. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 19 \| 23

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![](exhibit99-3xu014.jpg) | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** |
| ![](exhibit99-3xu014.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) |
| ![](exhibit99-3xu014.jpg) |  | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu014.jpg) |  | **March 2025**<br>**budget** | **March 2025**<br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Preliminary**<br>**results<sup>(1)</sup>** | **Adjustment<br>since the<br>March 2025<br>budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) |  | **Level**<br> **(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level** <br>**(M$)** | ***Change<br>(%)*** | **Adjustment<br>(M$)** | **Level**<br> **(M$)** | ***Change<br>(%)*** | **Adjustment<br>since the<br>March 2025<br>budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) | **Own-source revenue** |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | Income and property taxes |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | - Personal income tax | 46 944 | *3.3* | 2 059 | 49 003 | *7.3* | -55 | 48 948 | *7.1* | 2 004 |
| ![](exhibit99-3xu014.jpg) | - Contributions for health services | 9 242 | *3.2* | -67 | 9 175 | *3.6* | 119 | 9 294 | *5.0* | 52 |
| ![](exhibit99-3xu014.jpg) | - Corporate taxes | 12 491 | *-3.8* | 1 611 | 14 102 | *5.7* | 573 | 14 675 | *10.0* | 2 184 |
| ![](exhibit99-3xu014.jpg) | - School property tax | 1 346 | *14.1* | -91 | 1 255 | *4.9* | -12 | 1 243 | *3.9* | -103 |
| ![](exhibit99-3xu014.jpg) | Consumption taxes | 28 922 | *3.4* | 442 | 29 364 | *3.5* | 405 | 29 769 | *4.9* | 847 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Tax revenue** | **98 945** | ***2.5*** | **3 954** | **102 899** | ***5.6*** | **1 030** | **103 929** | ***6.6*** | **4 984** |
| ![](exhibit99-3xu014.jpg) | Duties, permits and royalties | 6 220 | *5.1* | 91 | 6 311 | *1.9* | 373 | 6 684 | *8.0* | 464 |
| ![](exhibit99-3xu014.jpg) | Miscellaneous revenue | 15 299 | *-8.2* | 96 | 15 395 | *-5.3* | -341 | 15 054 | *-7.4* | -245 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Other own-source revenue** | **21 519** | ***-4.7*** | **187** | **21 706** | ***-3.3*** | **32** | **21 738** | ***-3.1*** | **219** |
| ![](exhibit99-3xu014.jpg) | **Total own-source revenue excluding revenue from government enterprises** | **120 464** | ***1.1*** | **4 141** | **124 605** | ***3.9*** | **1 062** | **125 667** | ***4.8*** | **5 203** |
| ![](exhibit99-3xu014.jpg) | Revenue from government enterprises | 5 268 | *-2.6* | 79 | 5 347 | *-6.0* | -106 | 5 241 | *-7.9* | -27 |
| ![](exhibit99-3xu014.jpg) | **Total own-source revenue** | **125 732** | ***1.0*** | **4 220** | **129 952** | ***3.5*** | **956** | **130 908** | ***4.2*** | **5 176** |
| ![](exhibit99-3xu014.jpg) | **Federal transfers** |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | Equalization | 13 567 | *1.9* |  | 13 567 | *1.9* |  | 13 567 | *1.9* |  |
| ![](exhibit99-3xu014.jpg) | Health transfers | 8 942 | *6.1* | -257 | 8 685 | *3.0* | -24 | 8 661 | *2.7* | -281 |
| ![](exhibit99-3xu014.jpg) | Transfers for post-secondary education <br>and other social programs | 1 330 | *-1.5* | -15 | 1 315 | *-2.6* | -15 | 1 300 | *-3.7* | -30 |
| ![](exhibit99-3xu014.jpg) | Other programs | 6 771 | *-10.3* | 239 | 7 010 | *-5.3* | -333 | 6 677 | *-9.8* | -94 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Federal transfers** | **30 610** | ***-0.1*** | **-33** | **30 577** | ***0.3*** | **-372** | **30 205** | ***-1.0*** | **-405** |
| ![](exhibit99-3xu014.jpg) | **TOTAL REVENUE** | **156 342** | ***0.7*** | **4 187** | **160 529** | ***2.8*** | **584** | **161 113** | ***3.2*** | **4 771** |
| ![](exhibit99-3xu014.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 20 \| 23

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**Preliminary results for 2025-2026 - Expenditure**

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![](exhibit99-3xu014.jpg) | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** | **Appendix 1: Preliminary results of 2025-2026 (cont.)** |
| ![](exhibit99-3xu014.jpg) |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) | **Preliminary results for 2025-2026 - Revenue**<br>(level and adjustment in millions of dollars, year-over-year percentage change) |
| ![](exhibit99-3xu014.jpg) |  | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** | **Fiscal 2025-2026** |
| ![](exhibit99-3xu014.jpg) |  | **March 2025**<br>**budget** | **March 2025**<br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **March 2026**<br>**budget** | **Preliminary** <br>**results<sup>(1)</sup>** | **Preliminary** <br>**results<sup>(1)</sup>** | **Preliminary** <br>**results<sup>(1)</sup>** | **Adjustment since the March 2025 budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) |  | **Level**<br> **(M$)** | ***Change (%)*** | **Adjustment (M$)** | **Level**<br> **(M$)** | ***Change***<br>***(%)*** | **Adjustment (M$)** | **Level**<br> **(M$)** | ***Change (%)*** | **Adjustment since the March 2025 budget**<br>**(M$)** |
| ![](exhibit99-3xu014.jpg) | **Portfolio expenditures** |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | Santé et Services sociaux | 65 527 | *3.0* | 464 | 65 991 | *2.7* | -92 | 65 899 | *2.6* | 372 |
| ![](exhibit99-3xu014.jpg) | Éducation | 23 517 | *2.2* | -1 | 23 516 | *0.7* | 16 | 23 532 | *0.8* | 15 |
| ![](exhibit99-3xu014.jpg) | Enseignement supérieur | 11 311 | *2.1* | 24 | 11 335 | *-0.4* | -190 | 11 145 | *-2.1* | -166 |
| ![](exhibit99-3xu014.jpg) | Famille | 9 308 | *7.2* | 433 | 9 741 | *8.1* | -50 | 9 691 | *7.5* | 383 |
| ![](exhibit99-3xu014.jpg) | Transports et Mobilité durable | 7 308 | *-3.5* | 1 954 | 9 262 | *20.5* | -68 | 9 194 | *19.7* | 1 886 |
| ![](exhibit99-3xu014.jpg) | Emploi et Solidarité sociale | 5 804 | *0.1* | -1 | 5 803 | *1.7* | 2 | 5 805 | *1.7* | 1 |
| ![](exhibit99-3xu014.jpg) | Affaires municipales et Habitation | 5 623 | *9.3* | 135 | 5 758 | *15.0* | -457 | 5 301 | *5.9* | -322 |
| ![](exhibit99-3xu014.jpg) | Économie, Innovation et Énergie | 4 521 | *-6.9* | 346 | 4 867 | *2.1* | -462 | 4 405 | *-7.6* | -116 |
| ![](exhibit99-3xu014.jpg) | Environnement, Lutte contre les changements climatiques, Faune et Parcs | 2 436 | *0.0* | -447 | 1 989 | *-8.8* | -139 | 1 850 | *-15.2* | -586 |
| ![](exhibit99-3xu014.jpg) | Other portfolios | 20 747 | *-2.2* | -980 | 19 767 | *10.0* | -729 | 19 038 | *5.9* | -1 709 |
| ![](exhibit99-3xu014.jpg) | **Subtotal - Portfolio expenditures** | **156 102** | ***1.8*** | **1 927** | **158 029** | ***4.5*** | **-2 169** | **155 860** | ***3.0*** | **-242** |
| ![](exhibit99-3xu014.jpg) | **Debt service** | **9 670** | **-1.9** | **485** | **10 155** | **1.9** | **-6** | **10 149** | **1.8** | **479** |
| ![](exhibit99-3xu014.jpg) | **TOTAL EXPENDITURE** | **165 772** | ***1.5*** | **2 412** | **168 184** | ***4.3*** | **-2 175** | **166 009** | ***2.9*** | **237** |
| ![](exhibit99-3xu014.jpg) | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  | (1) Preliminary results according to the information available as at June 1, 2026 with regard to the fiscal year ending March 31, 2026. The results will be adjusted to consider additional information obtained until the closing of the consolidated financial statements. The final results will be presented in the *2025-2026 Public Accounts*.  |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 21 \| 23

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| ![](exhibit99-3xu014.jpg) | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** | **Appendix 2: Change in certain economic variables** |
| ![](exhibit99-3xu014.jpg) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| ![](exhibit99-3xu014.jpg) | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** | **Recent economic indicators in Québec** |
| ![](exhibit99-3xu014.jpg) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) | (percentage change compared to the previous period, unless otherwise indicated) |
| ![](exhibit99-3xu014.jpg) |  | **Feb.<br>2026** | **March<br>2026** | **April<br>2026** | **May<br>2026** | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** | **2026** | **2026** |
| ![](exhibit99-3xu014.jpg) |  | **Feb.<br>2026** | **March<br>2026** | **April<br>2026** | **May<br>2026** | **Quarters** | **Quarters** | **Quarters** | **Quarters** | **Annual** | **Annual** | **Quarter** | **Annual** | **Annual** |
| ![](exhibit99-3xu014.jpg) |  | **Feb.<br>2026** | **March<br>2026** | **April<br>2026** | **May<br>2026** | **Q1** | **Q2** | **Q3** | **Q4** | **Fcst<sup>(1)</sup>** | **Obs.** | **Q1** | **Fcst<sup>(1)</sup>** | **Obs.<sup>(2)</sup>** |
| ![](exhibit99-3xu014.jpg) | Real GDP by industry | 0.4 |  |  |  | 0.1 | -0.7 | 0.2 | -0.1 | 0.8 | 0.6 |  | 1.1 | -0.1 |
| ![](exhibit99-3xu014.jpg) | Job creation<br>(thousands) | -57.3 | 9.9 | -43.3 | 13.2 | 23.1 | 7.5 | -3.7 | 19.4 | 78.8 | 78.8 | -21.9 | 20.4 | -19.6 |
| ![](exhibit99-3xu014.jpg) | Unemployment rate<br>(per cent) | 5.9 | 5.4 | 6.2 | 5.6 | 5.6 | 6 | 5.7 | 5.2 | 5.6 | 5.6 | 5.5 | 5.4 | 5.7 |
| ![](exhibit99-3xu014.jpg) | Retail sales<br>(nominal terms) | 1.9 | -0.8 |  |  | -0.7 | 0.7 | 1.5 | -0.4 | 3.4 | 3.4 | 1.8 | 2.5 | 3.5 |
| ![](exhibit99-3xu014.jpg) | Consumer price index<sup>(3)</sup> | 2.8 | 2.9 | 3 |  | 1.9 | 2 | 2.8 | 3.1 | 2.4 | 2.4 | 2.9 | 2.3 | 2.9 |
| ![](exhibit99-3xu014.jpg) | Housing starts<br>(thousands) | 58.2 | 87.9 | 64.3 |  | 57.5 | 59.9 | 59.7 | 60.6 | 59.9 | 59.9 | 62.7 | 56 | 63.1 |
| ![](exhibit99-3xu014.jpg) | Real GDP |  |  |  |  | 0.3 | -0.7 | 0.1 | -0.1 | 0.8 | 0.7 |  | 1.1 |  |
| ![](exhibit99-3xu014.jpg) | GDP<br>(nominal terms) |  |  |  |  | 1 | 0.4 | 1.1 | 0.5 | 4.5 | 4.7 |  | 3.5 |  |
| ![](exhibit99-3xu014.jpg) | Household consumption <br>(nominal terms) |  |  |  |  | -0.1 | 1.2 | 0.8 | 1.5 | 4 | 4.4 |  | 3.8 |  |
| ![](exhibit99-3xu014.jpg) | Wages and salaries<br>(nominal terms) | 0.4 | 0.1 |  |  | 1.2 | -0.2 | 1.6 | 0.3 | 4.4 | 4.5 | 0.9 | 3 | 2.6 |
| ![](exhibit99-3xu014.jpg) | Net operating surplus<br>of corporations<br>(nominal terms) |  |  |  |  | 1.3 | 0.3 | 0.5 | -0.4 | 5.7 | 4.7 |  | 3.7 |  |
| ![](exhibit99-3xu014.jpg) | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. | (1) These forecasts correspond to those published in the Budget 2026-2027.<br>(2) This represents the average of the periods available in 2026 compared to the same period in 2025.<br>(3) Change compared to the previous year.<br>Sources : Institut de la statistique du Québec, Statistics Canada, Canada Mortgage and Housing Corporation and Ministère des Finances. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 22 \| 23

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| ![](exhibit99-3xu015.jpg) | **> Note to the reader**<br> The *Report on Québec's Financial Situation* provides an overview of the Québec government's financial results. It is prepared with a view to increasing the transparency of public finances and regularly monitoring the achievement of the budgetary balance target for the fiscal year. The financial information presented in the report is not audited and is based on the accounting policies in the government's annual financial statements.<br> **> Consolidated financial information**<br> Consolidated results include the results of all entities that are part of the government's reporting entity, i.e., that are under its control. To determine consolidated results, the government eliminates transactions carried out between entities in the reporting entity. Additional information on the government's financial organization and the funding of public services can be found on pages 14 to 19 of the document titled *"*<u>*Processus et documentation budgétaires : une reddition de comptes sur les finances publiques de l'État*</u>" (in French only).<br> **> Publication date of next quarterly report**<br> The Report on Québec's Financial Situation - First Quarter of 2026-2027 will be published in September 2026. |
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| ![](exhibit99-3xu015.jpg) | &nbsp;&nbsp;&nbsp; For more information, contact the Ministère des Finances at <u>info@finances.gouv.qc.ca</u>. |
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Report on Québec's Financial <br> Situation – Preliminary results of 2025-2026 Page 23 \| 23

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