Thu, 08 Nov 2012

The Parti Quebecois, Quebec’s provincial government, has announced that they will release their budget on November 20^th.

 

While Finance Minister Nicholas Marceau claims that a new budget is needed to balance the books in 2013-2014, several pundits see the move as an obvious one in self-preservation.

 

But what does this mean for Quebec businesses, specifically startups that rely on government grants and R&D tax credits?

 

One Montreal CEO doesn’t see much optimism in the potential cuts that could come in two weeks.

 

“My only expectation would be cuts and no new programs,” said Jeffrey Dungen of reelyActive. “We'll see on November 20th what moves the PQ think they need to do to win the next election which is coming sooner than later."

 

Since the Liberals are currently between leaders, and not in a position to force an election, it makes sense for the PQ to release the budget now. 

 

“Waiting until the spring of 2013 would only delay the identification and execution of actions needed to get Quebec back on the road to a balanced budget next year,” said Marceau.

 

The party has made it clear that they intend to weaken budgets for some areas.

 

“In spite of the difficult situation we face, I must reiterate the commitment of the government to re-establish a balanced budget next year,” Marceau continued. “Delaying this deadline would have major consequences on the finances and economy of Quebec.”

 

New Quebec premier Pauline Marois echoed these sentiments last week during her inaugural address to the Quebec National Assembly. “We will protect the interests of Quebecers by assuming our responsibilities and attaining a balanced budget.”

Coalition Avenir Quebec (CAQ) leader Francois Legault has indicated that he would vote against a new budget put forth by the PQ, leaving the Liberals in a prime position.

 

The last time there was a fall budget was in November 2001, when Pauline Marois was finance minister.

The subject comes just days removed from the recent US presidential election. With President Barack Obama elected to a second term, media outlets have already speculated about what this will mean for entrepreneurs and government funding.

 

Specifically Obama has hailed entrepreneurs and technologists as living “the promise of America,” praising them for helping lead the country out of recession. Craigslist’s Craig Newmark and LinkedIn’s Reid Hoffman publicly support him. He also signed the JOBS Act and the America Invents Act, both intended to help entrepreneurs, into law.