# EDGAR Filing Document

**Accession Number:** 0000722803
**File Stem:** 0001176256-23-000041
**Filing Date:** 2023-2
**Character Count:** 40844
**Document Hash:** ef8544a17f9fc41d04718d0ef8be41e4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001176256-23-000041.hdr.sgml**: 20230227

**ACCESSION NUMBER**: 0001176256-23-000041

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

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20220331

**FILED AS OF DATE**: 20230227

**DATE AS OF CHANGE**: 20230227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** QUEBEC
- **CENTRAL INDEX KEY:** 0000722803
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 18-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 002-86339
- **FILM NUMBER:** 23671151

**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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**FORM 18-K/A**<br>**For Foreign Governments and Political Subdivisions Thereof**

**SECURITIES AND EXCHANGE COMMISSION**<br>Washington, D.C. 20549

**AMENDMENT NO. 12**

**to**

**ANNUAL REPORT**

of

**QUÉBEC**<br>(Name of Registrant)

**Date of end of last fiscal year: March 31, 2022**

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

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

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

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

Copies to:

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

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

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The undersigned registrant hereby amends its Annual Report on Form 18-K for the fiscal year ended March 31, 2022 (the "Annual Report") as follows:

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

<u>Exhibit:</u>

[(99.14)](exhibit99-14.htm) [Monthly Report on Financial Transactions as at November 30, 2022.](exhibit99-14.htm)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment no. 12 to be signed on its behalf by its authorized agent.

QUÉBEC

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| | |
|:---|:---|
| By: | <u>/s/ Alain Bélanger</u> |
| Name: | Alain Bélanger |
| Title: | Assistant Deputy Minister |

---

Date: February 27, 2023

2<br>

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## Exhibit 99.1

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**Exhibit 99.14** <br>

![](exhibit99-14x1x1.jpg)<br>

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| |
|:---|
| **Note to the reader**<br> The *Monthly Report on Financial Transactions* provides an overview of the Québec government's monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government's annual financial statements.<sup>(1)</sup><br> The *Monthly Report on Financial Transactions at December 31*, *2022* will be published at the same time as the *Québec Budget Plan - March 2023*. |
| **Note to the reader**<br> The *Monthly Report on Financial Transactions* provides an overview of the Québec government's monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government's annual financial statements.<sup>(1)</sup><br> The *Monthly Report on Financial Transactions at December 31*, *2022* will be published at the same time as the *Québec Budget Plan - March 2023*. |
| **Note to the reader**<br> The *Monthly Report on Financial Transactions* provides an overview of the Québec government's monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government's annual financial statements.<sup>(1)</sup><br> The *Monthly Report on Financial Transactions at December 31*, *2022* will be published at the same time as the *Québec Budget Plan - March 2023*. |
| **Note to the reader**<br> The *Monthly Report on Financial Transactions* provides an overview of the Québec government's monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government's annual financial statements.<sup>(1)</sup><br> The *Monthly Report on Financial Transactions at December 31*, *2022* will be published at the same time as the *Québec Budget Plan - March 2023*. |
| **Note to the reader**<br> The *Monthly Report on Financial Transactions* provides an overview of the Québec government's monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government's annual financial statements.<sup>(1)</sup><br> The *Monthly Report on Financial Transactions at December 31*, *2022* will be published at the same time as the *Québec Budget Plan - March 2023*. |

---

---

| | |
|:---|:---|
| **Highlights for November 2022**<br>At November 30, 2022, that is, for the first eight months of 2022-2023, the budgetary balance within the meaning of the *Balanced Budget Act* showed a deficit of $1.1 billion. This represents a $2.6-billion decrease in the budgetary balance compared to the same time last year. <br> The result is due to:<br> revenues of $92.7 billion;<br> expenditures of $91.8 billion;<br> deposits of $2.0 billion in the Generations Fund.<br> According to the data presented in the fall 2022 *Update on Québec's Economic and Financial Situation*, a budgetary deficit of $5.2 billion is expected for the full year before use of the stabilization reserve (see Appendix 1).<br> This deficit includes $5.4 billion in new initiatives aimed at helping Quebecers cope with the rising cost of living, as well as a provision for economic risks and other support and recovery measures of $1.0 billion.<br>| ![](exhibit99-14x1x2.jpg) |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SUMMARY OF CONSOLIDATED RESULTS** | **SUMMARY OF CONSOLIDATED RESULTS** |  |  |  |  |  |  |
| (unaudited data, millions of dollars) |  |  |  |  |  |  |  |
|  | **November** | **November** | **November** | **April to November** | **April to November** | **April to November** | **April to November** |
|  | **2021** | **2022** | **Change** | **2021-2022** | **2022-2023** | **Change** | **Change (%)** |
| Own-source revenue | 9 003 | 8 869 | –134 | 68 498 | 74 009 | 5 511 | 8.0 |
| Federal transfers | 2 261 | 2 332 | 71 | 18 713 | 18 702 | –11 | –0.1 |
| **Total revenue** | **11 264** | **11 201** | **–63** | **87 211** | **92 711** | **5 500** | **6.3** |
| Portfolio expenditures<sup>(2)</sup> | –10 743 | –13 981 | –3 238 | –77 743 | –84 746 | –7 003 | 9.0 |
| Debt service | –740 | –770 | –30 | –5 759 | –7 063 | –1 304 | 22.6 |
| **Total expenditure** | **–11 483** | **–14 751** | **–3 268** | **–83 502** | **–91 809** | **–8 307** | **9.9** |
| **SURPLUS (DEFICIT)<sup>(3)</sup>** | **–219** | **–3 550** | **–3 331** | **3 709** | **902** | **–2 807** | **—** |
| ***BALANCED BUDGET ACT*** |  |  |  |  |  |  |  |
| Deposits of dedicated revenues in the Generations Fund | –273 | –232 | 41 | –2 236 | –2 024 | 212 |  |
| **BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE** | **–492** | **–3 782** | **–3 290** | **1 473** | **–1 122** | **–2 595** | **—** |

---

1<br>

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![](exhibit99-14x2x1.jpg)

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| | |
|:---|:---|
| **REVENUE** **Own-source revenue**<br> At November 30, 2022, own-source revenue totalled $74.0 billion. This represents an increase of $5.5 billion (8.0%) compared to the same period last year.<br> Changes in the main economic indicators had a positive effect on own-source revenue.<br> **Tax revenue** increased by $4.6 billion (8.5%) to $59.1 billion, due to:<br> a $1.7-billion increase (6.6%) in **personal income tax** and a $387-million increase (8.2%) in **contributions for health** **services**, mainly due to growth in wages and salaries;<br> a $1.0-billion increase (15.1%) in revenue from **corporate taxes**, due in particular to changes in the net operating surplus of corporations;<br> a $1.5-billion increase (8.9%) in **consumption taxes**, due to the increase in household consumption, which was supported by the good performance of the labour market and the use of accumulated savings.<br> **Other own-source revenue** increased by $653 million (6.0%) to $11.6 billion, due to:<br> a $61-million increase (1.6%) in **duties and permits**, mainly due to higher revenues from Québec's cap-and-trade system for greenhouse gas emission allowances (CAT system).<br> a $592-million increase (8.3%) in **miscellaneous revenue,** due in particular to the increase in revenues from the sale of goods and services and to the increase in interest income related to tax debts administered by the Agence du revenu du Québec, the effect of which was essentially mitigated by the decrease in investment income of the Generations Fund.<br> **Revenue from government enterprises** increased by $233 million (7.5%), to $3.3 billion. This increase is due in part to the increase in the value of electricity exports reported by Hydro-Québec and by a return to normal operations for Loto-Québec, whereas during the same period last year, the corporation had not fully resumed its activities due to public health restrictions related to the pandemic. The increase was mitigated by a decrease in Investissement Québec's results related to unfavourable financial market results from April to November 2022. | ![](exhibit99-14x2x2.jpg) |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **OWN-SOURCE REVENUE** |  |  |  |  |  |  |  |
| (unaudited data, millions of dollars) |  |  |  |  |  |  |  |
|  | **November** | **November** | **November** | **April to November** | **April to November** | **April to November** | **April to November** |
|  | **2021** | **2022** | **Change** | **2021-2022** | **2022-2023** | **Change** | **Change (%)** |
| Income and property taxes |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal income tax | 3 007 | 2 985 | –22 | 25 081 | 26 737 | 1 656 | 6.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions for health services | 536 | 613 | 77 | 4 739 | 5 126 | 387 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate taxes | 1 122 | 901 | –221 | 6 893 | 7 932 | 1 039 | 15.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; School property tax | 90 | 95 | 5 | 712 | 735 | 23 | 3.2 |
| Consumption taxes | 2 203 | 2 211 | 8 | 17 020 | 18 540 | 1 520 | 8.9 |
| **Tax revenue** | **6 958** | **6 805** | **–153** | **54 445** | **59 070** | **4 625** | **8.5** |
| Duties and permits | 722 | 642 | –80 | 3 827 | 3 888 | 61 | 1.6 |
| Miscellaneous revenue | 936 | 1 019 | 83 | 7 136 | 7 728 | 592 | 8.3 |
| **Other own-source revenue** | **1 658** | **1 661** | **3** | **10 963** | **11 616** | **653** | **6.0** |
| **Total own-source revenue excluding revenue from government enterprises** | **8 616** | **8 466** | **–150** | **65 408** | **70 686** | **5 278** | **8.1** |
| Revenue from government enterprises | 387 | 403 | 16 | 3 090 | 3 323 | 233 | 7.5 |
| **TOTAL** | **9 003** | **8 869** | **–134** | **68 498** | **74 009** | **5 511** | **8.0** |

---

2<br>

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![](exhibit99-14x2x1.jpg)

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| | |
|:---|:---|
| **Federal transfers** At November 30, 2022, federal transfers totalled $18.7 billion. This represents a decrease of $11 million (0.1%) compared to the same period last year. This change is mainly due to a decrease in revenue from health transfers, partially offset by an increase in equalization revenue.<br> Revenue from **health transfers** decreased by $535 million (9.9%)to $4.9 billion, mainly due to the decrease in the supplementary health transfer related to COVID-19 compared to the previous year.<br> **Equalization** revenue increased by $365 million (4.2%) to $9.1 billion. This increase is partially due to growth in Canada's nominal GDP, which determines the pace of growth in the equalization envelope across Canada. | ![](exhibit99-14x3x1.jpg) |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **FEDERAL TRANSFERS** |  |  |  |  |  |  |  |
| (unaudited data, millions of dollars) |  |  |  |  |  |  |  |
|  | **November** | **November** | **November** | **April to November** | **April to November** | **April to November** | **April to November** |
|  | **2021** | **2022** | **Change** | **2021-2022** | **2022-2023** | **Change** | **Change (%)** |
| Equalization | 1 094 | 1 139 | 45 | 8 746 | 9 111 | 365 | 4.2 |
| Health transfers | 679 | 610 | –69 | 5 426 | 4 891 | –535 | –9.9 |
| Transfers for post-secondary education and other social programs | 136 | 118 | –18 | 1 083 | 943 | –140 | –12.9 |
| Other programs | 352 | 465 | 113 | 3 458 | 3 757 | 299 | 8.6 |
| **TOTAL** | **2 261** | **2 332** | **71** | **18 713** | **18 702** | **–11** | **–0.1** |

---

3<br>

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![](exhibit99-14x2x1.jpg)

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| | |
|:---|:---|
| **EXPENDITURE** At November 30, 2022, consolidated expenditure totalled $91.8 billion. This represents an increase of $8.3 billion (9.9%) compared to the same period last year.<br> Expenditure in the **Santé et Services sociaux** portfolio increased by $278 million (0.7%) to $37.5 billion. This increase is primarily due to the indexation of salary scales of staff in health and social services institutions.<br> Expenditure in the **Éducation** portfolio increased by $1.2 billion (10.9%) to $12.2 billion. This increase is due in part to the indexation of salary scales as well as the increase in the number of students in educational institutions.<br> Expenditure in the **Enseignement supérieur** portfolio increased by $504 million (9.0%) to $6.1 billion. This growth is due in particular to increased spending by college and university educational institutions.<br> Expenditure in **other portfolios** increased by $5.0 billion (20.9%) to $29.0 billion, due, among other things, to:<br> a $3.1-billion increase in expenditure in the Emploi et Solidarité sociale portfolio, which is due to the recognition in November of the new one-time cost of living amount totaling $3.5 billion;<br> a $653-million increase in expenditure in the Affaires municipales et Habitation portfolio, due in part to grants to promote access to quality, affordable housing and for the renovation of the low income housing stock;<br> a $414-million increase in expenditure in the Transports et Mobilité durable portfolio, due in particular to the $91-million compensation granted to the Caisse de dépôt et placement du Québec for studies related to the Réseau express métropolitain (REM) project in the east end of Montréal, the governance of which is now assumed by the government and the Ville de Montréal, as well as increased spending on road maintenance operations;<br> a $344-million increase in expenditure in the Famille portfolio, due in part to the increase in funding under the agreement on national clauses for childcare centres, the tax credit for childcare expenses and the family allowance.<br> **Debt service** expenditure increased by $1.3 billion (22.6%) to $7.1 billion. This increase is mainly due to the rise in interest rates. | ![](exhibit99-14x4x1.jpg) |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **EXPENDITURE** | **EXPENDITURE** | **EXPENDITURE** |  |  |  |  |  |
| (unaudited data, millions of dollars) |  |  |  |  |  |  |  |
|  | **October** | **October** | **October** | **April to October** | **April to October** | **April to October** | **April to October** |
|  | **2021** **<sup>(4)</sup>** | **2022** | **Change** | **2021-2022** **<sup>(4)</sup>** | **2022-2023** | **Change** | **Change (%)** |
| Santé et Services sociaux | 4 973 | 4 855 | –118 | 37 188 | 37 466 | 278 | 0.7 |
| Éducation | 1 671 | 1 850 | 179 | 10 984 | 12 184 | 1 200 | 10.9 |
| Enseignement supérieur | 734 | 828 | 94 | 5 602 | 6 106 | 504 | 9.0 |
| Other portfolios<sup>(5)</sup> | 3 365 | 6 448 | 3 083 | 23 969 | 28 990 | 5 021 | 20.9 |
| **Portfolio expenditures** | **10 743** | **13 981** | **3 238** | **77 743** | **84 746** | **7 003** | **9.0** |
| **Debt service** | **740** | **770** | **30** | **5 759** | **7 063** | **1 304** | **22.6** |
| **TOTAL** | **11 486** | **14 751** | **3 268** | **83 502** | **91 809** | **8 307** | **9.9** |

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4<br>

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![](exhibit99-14x2x1.jpg)

**NET FINANCIAL SURPLUSES OR REQUIREMENTS**

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| |
|:---|
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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. |
| **Composition of net financial surpluses or requirements**<br> The government's revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.<br> Net financial surpluses (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, fixed assets and other investments, by retirement plans and other employee future benefits, as well as by other accounts. 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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For the period of April to November 2022, net financial requirements amount to $8.8 billion and are due to:

* the $902-million surplus resulting from the difference between government revenue and expenditure;

* the $4.4-billion financial requirements for investments, loans and advances, due in part to an increase in the consolidation value of government enterprises;<sup>(6)</sup>

* the $2.9-billion financial requirements related to government capital investments, mainly due to investments of $5.9 billion, offset by amortization expenses of $3.1 billion;<sup>(6)</sup>

* the $1.9-billion financial requirements related to retirement plans and other employee future benefits liabilities, mainly resulting from the payment of government employee benefits of $4.5 billion, partially offset by the net cost of plans of $2.5 billion;<sup>(6)</sup>

* the $1.6-billion surplus from other accounts<sup>(7)</sup>;

* the $2.0-billion financial requirements generated by deposits in the Generations Fund.

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| | | |
|:---|:---|:---|
| **NET FINANCIAL SURPLUSES OR REQUIREMENTS** |  |  |
| (unaudited data, millions of dollars) |  |  |
|  | **April to November** | **April to November** |
|  | **2021-2022** | **2022-2023** |
| **SURPLUS (DEFICIT)<sup>(3)</sup>** | **3 709** | **902** |
| **Non-budgetary transactions** |  |  |
| Investments, loans and advances | –9 580 | –4 421 |
| Capital investments | –2 772 | –2 857 |
| Retirement plans and other employee future benefits | –1 971 | –1 914 |
| Other accounts<sup>(7)</sup> | 2 504 | 1 563 |
| Deposits in the Generations Fund | –2 236 | –2 024 |
| **Total non-budgetary transactions** | **–14 055** | **–9 653** |
| **NET FINANCIAL SURPLUSES (REQUIREMENTS)** | **–10 346** | **–8 751** |

---

5<br>

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![](exhibit99-14x2x1.jpg)

* **Change in the budgetary balance in 2022-2023**

Results at November 30, 2022, that is, for the first eight months of the fiscal year, showed a budgetary deficit of $1.1 billion.

According to the data presented in the fall 2022 *Update on Québec's Economic and Financial Situation*, a budgetary deficit of $5.2 billion is expected for 2022-2023 before use of the stabilization reserve.

Several factors will have a downward impact on the budgetary balance by March 31, 2023:

* the accelerating pace of monetary policy tightening and rising cost of living lead to a marked deterioration in the economic outlook:

* nominal GDP growth of 10.7% in the period from April to September 2022 will fall to 4.6% for the rest of the year. As a result, revenue growth will slow to 5.1% as of March 31, 2023, 

* this situation, combined with the expected acceleration in expenditure growth (7.2% as at March 31, 2023) and deposits of dedicated revenues in the Generations Fund, will have the effect of reducing the budgetary balance by $1.3 billion,

* new initiatives announced since March 2022 aimed at helping Quebecers cope with the rising cost of living, mainly the implementation of the Anti-Inflation Shield, of which a $1.8-billion balance remains to be recognized;

the new one-time cost of living amount, which represents assistance totalling $3.5 billion, was recorded in November;

* to offset the potential effects of a greater-than-expected economic slowdown, the budgetary deficit includes a provision for economic risks and other support and recovery measures of $1.0 billion.

The use of the stabilization reserve will also make it possible to reduce the budgetary deficit in 2022-2023 to $4.8 billion.

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| | |
|:---|:---|
| **CHANGE IN THE BUDGETARY BALANCE IN 2022-2023** |  |
| (millions of dollars) |  |
|  | **2022-2023** |
| **BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE – *MONTHLY REPORT ON FINANCIAL TRANSACTIONS AT NOVEMBER 30, 2022*** | **–1 122** |
| **UPCOMING RESULTS FROM DECEMBER 2022 TO MARCH 2023** |  |
| **Results excluding new initiatives and provision** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated revenue | 52 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated expenditure | –52 255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits of dedicated revenues in the Generation Funds | –1 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Subtotal** | **–1 329** |
| **Balance of the initiatives announced since March 2022 to be recognized** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Implementing the Anti-Inflation Shield | –1 577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Improving housing affordability | –144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strengthening security in Montréal | –53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Subtotal** | **–1 774** |
| **Provision for economic risks and other support and recovery measures** | **–1 000** |
| **TOTAL UPCOMING RESULTS** | **–4 103** |
| **BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE – DECEMBER 2022 UPDATE** | **–5 225** |
| Use of the stabilization reserve | 449 |
| **PROJECTED BUDGETARY BALANCE<sup>(8)</sup> – DECEMBER 2022 UPDATE** | **–4 776** |

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![](exhibit99-14x2x1.jpg)

**APPENDIX 1: BUDGET FORECASTS – CHANGE SINCE THE MARCH 2022 BUDGET**

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| | | | | |
|:---|:---|:---|:---|:---|
| **BUDGET FORECAST FOR 2022-2023** |  |  |  |  |
| (millions of dollars) |  |  |  |  |
|  | **March 2022** |  | **Fall 2022** |  |
|  | **budget** **<sup>(9)</sup>** | **Adjustments** | **Update** **<sup>(10)</sup>** | **Change (%)** **<sup>(11)</sup>** |
| **REVENUE** |  |  |  |  |
| Income and property taxes |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal income tax | 41 147 | 2 081 | 43 228 | 5.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions for health services | 7 299 | 489 | 7 788 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate taxes | 10 882 | 1 791 | 12 673 | –2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; School property tax | 1 178 | –65 | 1 113 | 3.4 |
| Consumption taxes | 26 706 | –152 | 26 554 | 8.0 |
| **Tax revenue** | **87 212** | **4 144** | **91 356** | **5.1** |
| Duties and permits | 5 171 | 506 | 5 677 | –6.3 |
| Miscellaneous revenue | 11 680 | –126 | 11 554 | 7.9 |
| **Other own-source revenue** | **16 851** | **380** | **17 231** | **2.8** |
| **Total own-source revenue excluding revenue from government enterprises** | **104 063** | **4 524** | **108 587** | **4.7** |
| Revenue from government enterprises | 5 628 | 1 010 | 6 638 | 11.4 |
| **Total own-source revenue** | **109 691** | **5 534** | **115 225** | **5.1** |
| Federal transfers | 28 790 | 818 | 29 608 | 1.5 |
| **Total revenue** | **138 481** | **6 352** | **144 833** | **4.3** |
| **EXPENDITURE** |  |  |  |  |
| Santé et Services sociaux | –55 842 | –1 645 | –57 487 | –0.7 |
| Éducation | –19 120 | 14 | –19 106 | 7.7 |
| Enseignement supérieur | –10 141 | –19 | –10 160 | 13.5 |
| Other portfolios<sup>(5)</sup> | –45 041 | –3 488 | –48 529 | 13.5 |
| **Portfolio expenditures** | **–130 144** | **–5 138** | **–135 282** | **6.2** |
| Debt service | –8 842 | –1 681 | –10 523 | 21.8 |
| **Total expenditure** | **–138 986** | **–6 819** | **–145 805** | **7.2** |
| Provision for economic risks and other support and recovery measures | –2 500 | 1 500 | –1 000 |  |
| **SURPLUS (DEFICIT)<sup>(3)</sup>** | **–3 005** | **1 033** | **–1 972** | **—** |
| ***BALANCED BUDGET ACT*** |  |  |  |  |
| Deposits of dedicated revenues in the Generations Fund | –3 445 | 192 | –3 253 |  |
| **BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE** | **–6 450** | **1 225** | **–5 225** | **—** |
| Use of the stabilization reserve |  | 449 | 449 |  |
| **BUDGETARY BALANCE<sup>(8)</sup>** | **–6 450** | **1 674** | **–4 776** | **—** |

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![](exhibit99-14x2x1.jpg)

**APPENDIX 2: PORTFOLIO EXPENDITURES**

Since 2022-2023, government spending is no longer broken down by mission but rather by portfolio.

The portfolio expenditures presented in the *Monthly Report on Financial Transactions* correspond to those incurred in the various sectors of government activity. The expenditure level presented also provides another budget management tool, which contributes to the accountability of public decision-makers for their entire departmental portfolio.

In order to ensure comparability between the budget forecasts, the *Monthly Report on Financial Transactions* and the public accounts, the following table presents the portfolio expenditures after inter-portfolio eliminations have been allocated.

Inter-portfolio eliminations result from the elimination of reciprocal transactions between entities in different portfolios.

Portfolios tied to the delivery of public services are:

* **Santé et Services sociaux**, which mainly includes expenditure related to the activities of bodies in the health and social services network and the programs administered by the Régie de l'assurance maladie du Québec. This portfolio also includes the expenditures of other governmental organizations related to health, such as Héma-Québec;

* **Éducation**, which mainly includes expenditure related to the activities of pre-school, elementary and secondary educational institutions. This portfolio also includes programs to promote recreational and sports activities as well as programs related to the status of women;

* **Enseignement supérieur**, which mainly includes expenditure attributable to the activities of educational institutions at the college and university levels. This portfolio also includes student financial assistance;

* **Other portfolios**, which include expenditures in all other portfolios, other than the Santé et Services sociaux, Éducation and Enseignement supérieur portfolios. Other portfolios include government funding for the cultural, transportation and childcare sectors, as well as support for individuals, municipalities and businesses.

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| | | | |
|:---|:---|:---|:---|
| **EXPENDITURES BY DEPARTMENTAL PORTFOLIO AFTER INTER-PORTFOLIO ELIMINATIONS** | **EXPENDITURES BY DEPARTMENTAL PORTFOLIO AFTER INTER-PORTFOLIO ELIMINATIONS** | **EXPENDITURES BY DEPARTMENTAL PORTFOLIO AFTER INTER-PORTFOLIO ELIMINATIONS** | **EXPENDITURES BY DEPARTMENTAL PORTFOLIO AFTER INTER-PORTFOLIO ELIMINATIONS** |
| (unaudited data, millions of dollars) |  |  |  |
|  |  | **April to November 2022** |  |
|  | **Expenditures before** |  | **Expenditures after** |
|  | **distribution of** | **Inter-portfolio** | **distribution of** |
|  | **inter-portfolio eliminations** | **eliminations** | **inter-portfolio eliminations** |
| Santé et Services sociaux | 37 466 | –754 | 36 712 |
| Éducation | 12 184 | –375 | 11 809 |
| Enseignement supérieur | 6 106 | –152 | 5 954 |
| Other portfolios | 28 990 | 1 281 | 30 271 |
| **TOTAL** | **84 746** | **—** | **84 746** |

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![](exhibit99-14x2x1.jpg)

**Consolidated financial information**

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).

**Notes**

(1) A summary of the government's significant accounting policies can be found on pages 76 to 81 of Volume 1 of *<u>Public Accounts 2021-2022</u>* . The impact of the following accounting standards issued by the Public Sector Accounting Board (PSAB), effective as of fiscal year 2022-2023, will be reflected in the public accounts as at March 31, 2023: PS 3450 Financial Instruments (as well as PS 1201 Financial Statement Presentation, PS 3041 Portfolio Investments and PS 2601 Foreign Currency Translation) and PS 3280 Asset Retirement Obligations.

(2) Portfolio expenditures after inter-portfolio eliminations have been allocated are presented in Appendix 2.

(3) Balance as defined in the public accounts.

(4) Certain expenditures were reclassified between portfolios to take into account the transition to the 2022-2023 budgetary structure.

(5) Other portfolios include inter-portfolio eliminations resulting from the elimination of reciprocal transactions between entities in different portfolios.

(6) 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.

(7) 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.

(8) Budgetary balance within the meaning of the *Balanced Budget Act*.

(9) The data in this column is consistent with that of the financial framework as published in the *<u>Québec Budget Plan – March 2022</u>* .

(10) The data in this column is consistent with that of the financial framework as published in the *<u>Update on Québec's Economic and Financial Situation – Fall 2022</u>* .

(11) This is the annual change compared to results in 2021-2022.

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|:---|
| For more information, contact the Direction des communications of the Ministère des Finances at 418-528-7382. |
| The report is also available on the Ministère des Finances website: *<u>www.finances.gouv.qc.ca</u>*. |

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