Exhibit 99.3
| Note to the reader: Preliminary results for 2018-2019 The results published on June 21, 2019 regarding the fiscal year ended March 31, 2019 are preliminary. These results will be revised to reflect additional information obtained until the financial close. The final results will be presented in Public Accounts 2018-2019. |
| SUMMARY OF CONSOLIDATED BUDGETARY TRANSACTIONS | ||||||||||||||||
| (unaudited data, millions of dollars) | ||||||||||||||||
| March | April to March | March 2019 budget(1) | ||||||||||||||
| 2018 | 2019 | 2017-2018 | 2018-2019 | Change (%) | 2018-2019 | Change (%) | (2) | |||||||||
| GENERAL FUND | ||||||||||||||||
| Revenue | ||||||||||||||||
| Own-source revenue | 7 512 | 7 227 | 62 006 | 66 209 | 6.8 | 64 844 | 4.6 | |||||||||
| Federal transfers | 1 554 | 1 681 | 20 072 | 20 938 | 4.3 | 20 999 | 4.6 | |||||||||
| Total revenue | 9 066 | 8 908 | 82 078 | 87 147 | 6.2 | 85 843 | 4.6 | |||||||||
| Expenditure | ||||||||||||||||
| Program spending | –8 623 | –9 233 | –72 428 | –76 413 | 5.5 | –76 869 | 6.1 | |||||||||
| Debt service | –580 | –598 | –7 148 | –6 672 | –6.7 | –6 775 | –5.2 | |||||||||
| Total expenditure | –9 203 | –9 831 | –79 576 | –83 085 | 4.4 | –83 644 | 5.1 | |||||||||
| NET RESULTS OF CONSOLIDATED ENTITIES(3) | ||||||||||||||||
| Non-budget-funded bodies and special funds(4) | –1 158 | –827 | 225 | 451 | — | 276 | — | |||||||||
| Health and social services and education networks(5) | –197 | –102 | –105 | –80 | — | 25 | — | |||||||||
| Generations Fund | 296 | 652 | 2 293 | 3 477 | — | 3 106 | — | |||||||||
| Total consolidated entities | –1 059 | –277 | 2 413 | 3 848 | — | 3 407 | — | |||||||||
| SURPLUS (DEFICIT)(6) | –1 196 | –1 200 | 4 915 | 7 910 | — | 5 606 | — | |||||||||
| BALANCED BUDGET ACT | ||||||||||||||||
| Deposits of dedicated revenues in the Generations Fund | –296 | –652 | –2 293 | –3 477 | — | –3 106 | — | |||||||||
| BUDGETARY BALANCE(7) | –1 492 | –1 852 | 2 622 | 4 433 | — | 2 500 | — | |||||||||
CHANGE IN THE BUDGETARY BALANCE IN 2018-2019
According to the Québec Budget Plan – March 2019, a budgetary surplus of $2.5 billion was expected for 2018-2019.
The preliminary results at March 31, 2019 show a balance of $4.4 billion for 2018-2019, an increase of $1.9 billion from the annual forecast. This revision comes from:
a $796-million increase in own-source revenue excluding those of government enterprises, which includes exceptional and non-recurring revenues from corporate taxes and higher revenues from personal income taxes;
a $569-million increase in revenues from government enterprises due to the effect of colder-than-expected temperatures on Hydro-Québec’s results and the increase in the value of Investissement Québec’s venture capital investments;
a $456-million decrease in expenditures related to the revision of estimates for certain provisions, including those for environmental liabilities and those for loans and loan guarantees granted by the government;
lower-than-expected interest rates that result in a $103-million decrease in debt service;
| CHANGE IN THE BUDGETARY BALANCE ACCORDING TO THE MARCH 2019 BUDGET | ||
| (millions of dollars) | ||
| 2018-2019 | ||
| BUDGETARY BALANCE(7) – MARCH 2019 BUDGET | 2 500 | |
| NEW INFORMATION SINCE MARCH 2019 BUDGET | ||
Own-source revenue excluding revenue from government enterprises | 796 | |
Revenue from government enterprises | 569 | |
Program spending | 456 | |
Debt service | 103 | |
Others | 9 | |
| SUBTOTAL | 1 933 | |
| BUDGETARY BALANCE(7) – PRELIMINARY RESULTS AT JUNE 21, 2019 | 4 433 |
2
GENERAL FUND REVENUE
For March 2019, General Fund revenue reached $8.9 billion, a decrease of $158 million compared to March 2018.
Own-source revenue reached $7.2 billion, a decrease of $285 million, or 3.8%, compared to March 2018.
Federal transfers amounted to $1.7 billion, up $127 million compared to March 2018.
For the period from April 1, 2018 to March 31, 2019, General Fund revenue totalled $87.1 billion, an increase of $5.1 billion, or 6.2%, compared to March 31, 2018.
Own-source revenue stood at $66.2 billion, up $4.2 billion, or 6.8%, compared to last year.
This increase is due primarily to growth in personal income tax ($1.5 billion), corporate taxes ($1.1 billion) and consumption taxes ($609 million).
Federal transfers amounted to $21.0 billion, up $866 million compared to March 31, 2018.
This growth stems primarily from a $651-million increase in equalization revenue.
| GENERAL FUND REVENUE | |||||||||||||
| (unaudited data, millions of dollars) | |||||||||||||
| March | April to March | ||||||||||||
| Revenue by source | 2018 | 2019 | Change (%) | 2017-2018 | 2018-2019 | Change (%) | |||||||
| Own-source revenue excluding revenue from government enterprises | |||||||||||||
| Income and property taxes | |||||||||||||
Personal income tax | 3 183 | 2 935 | –7.8 | 22 870 | 24 407 | 6.7 | |||||||
Contributions for health services | 803 | 794 | –1.1 | 7 506 | 7 803 | 4.0 | |||||||
Corporate taxes | 1 021 | 1 031 | 1.0 | 6 094 | 7 187 | 17.9 | |||||||
| Consumption taxes | 1 591 | 1 503 | –5.5 | 19 164 | 19 773 | 3.2 | |||||||
| Other sources | 297 | 197 | –33.7 | 1 712 | 1 870 | 9.2 | |||||||
| Total own-source revenue excluding revenue from government enterprises | 6 895 | 6 460 | –6.3 | 57 346 | 61 040 | 6.4 | |||||||
| Revenue from government enterprises | 617 | 767 | 24.3 | 4 660 | 5 169 | 10.9 | |||||||
| Total own-source revenue | 7 512 | 7 227 | –3.8 | 62 006 | 66 209 | 6.8 | |||||||
| Federal transfers | |||||||||||||
| Equalization | 924 | 978 | 5.8 | 11 081 | 11 732 | 5.9 | |||||||
| Health transfers | 405 | 524 | 29.4 | 6 096 | 6 306 | 3.4 | |||||||
| Transfers for post-secondary education and other social programs | 89 | 134 | 50.6 | 1 648 | 1 597 | –3.1 | |||||||
| Other programs | 136 | 45 | –66.9 | 1 247 | 1 303 | 4.5 | |||||||
| Total federal transfers | 1 554 | 1 681 | 8.2 | 20 072 | 20 938 | 4.3 | |||||||
| TOTAL | 9 066 | 8 908 | –1.7 | 82 078 | 87 147 | 6.2 |
3
GENERAL FUND EXPENDITURE
For March 2019, General Fund expenditure totalled $9.8 billion, up $628 million, or 6.8%, compared to the same period the previous fiscal year.
Program spending rose by $610 million, or 7.1%, to $9.2 billion.
Debt service amounted to $598 million, an increase of $18 million compared to the same period the previous year.
For the period from April 1, 2018 to March 31, 2019, General Fund expenditure totalled $83.1 billion, up $3.5 billion compared to the same period the previous fiscal year.
Program spending rose by $4.0 billion, or 5.5%, reaching $76.4 billion.
The most significant changes were in the Health and Social Services mission ($1.6 billion), the Education and Culture mission ($1.3 billion) and the Economy and environment mission ($597 million).
Debt service amounted to $6.7 billion, a decrease of $476 million compared to last year.
| GENERAL FUND EXPENDITURE | |||||||||||||
| (unaudited data, millions of dollars) | |||||||||||||
| March | April to March | ||||||||||||
| Expenditure by mission | 2018 | (8) | 2019 | Change (%) | 2017-2018(8) | 2018-2019 | Change (%) | ||||||
| Program spending | |||||||||||||
| Health and Social Services | 3 992 | 4 378 | 9.7 | 36 708 | 38 298 | 4.3 | |||||||
| Education and Culture | 2 081 | 2 141 | 2.9 | 18 982 | 20 314 | 7.0 | |||||||
| Economy and Environment | 1 426 | 1 353 | –5.1 | 5 898 | 6 495 | 10.1 | |||||||
| Support for Individuals and Families | 659 | 631 | –4.2 | 6 327 | 6 477 | 2.4 | |||||||
| Administration and Justice | 465 | 730 | 57.0 | 4 513 | 4 829 | 7.0 | |||||||
| Total program spending | 8 623 | 9 233 | 7.1 | 72 428 | 76 413 | 5.5 | |||||||
| Debt service | 580 | 598 | 3.1 | 7 148 | 6 672 | –6.7 | |||||||
| TOTAL | 9 203 | 9 831 | 6.8 | 79 576 | 83 085 | 4.4 | |||||||
4
CONSOLIDATED ENTITIES
For March 2019, the results of consolidated entities showed a deficit of $277 million. These results include:
a deficit of $761 million for special funds;
dedicated revenues of $652 million for the Generations Fund;
a deficit of $66 million for non-budget-funded bodies;
a deficit of $102 million for the health and social services and education networks.
For the period from April 1, 2018 to March 31, 2019, the results of consolidated entities showed a surplus of $3.8 billion. These results include:
a deficit of $16 million for special funds;
dedicated revenues of $3.5 billion for the Generations Fund;
a surplus of $467 million for non-budget-funded bodies;
a deficit of $80 million for the health and social services and education networks.
| DETAILS OF THE TRANSACTIONS OF CONSOLIDATED ENTITIES | ||||||||||||||||||
| (unaudited data, millions of dollars) | ||||||||||||||||||
| March 2019 | ||||||||||||||||||
| Transfers | ||||||||||||||||||
| Specified | (expenditures) | Non-budget- | Health and | |||||||||||||||
| Special | Generations | purpose | related to the | funded | education | Consolidation | ||||||||||||
| funds | Fund | accounts | tax system | bodies | networks | (5) | Total | adjustments | (9) | Total | ||||||||
| Revenue | 1 087 | 652 | 212 | 400 | 2 748 | — | 5 099 | –2 282 | 2 817 | |||||||||
| Expenditure | ||||||||||||||||||
Expenditure | –1 741 | — | –212 | –400 | –2 762 | –102 | –5 217 | 2 231 | –2 986 | |||||||||
Debt service | –107 | — | — | — | –52 | — | –159 | 51 | –108 | |||||||||
| Subtotal | –1 848 | — | –212 | –400 | –2 814 | –102 | –5 376 | 2 282 | –3 094 | |||||||||
| SURPLUS (DEFICIT) | –761 | 652 | — | — | –66 | –102 | –277 | — | –277 | |||||||||
| April 2018 to March 2019 | ||||||||||||||||||
| Transfers | ||||||||||||||||||
| Specified | (expenditures) | Non-budget- | Health and | |||||||||||||||
| Special | Generations | purpose | related to the | funded | education | Consolidation | ||||||||||||
| funds | Fund | accounts | tax system | bodies | networks | (5) | Total | adjustments | (9) | Total | ||||||||
| Revenue | 14 261 | 3 477 | 1 146 | 6 451 | 24 839 | — | 50 174 | –27 433 | 22 741 | |||||||||
| Expenditure | ||||||||||||||||||
Expenditure | –12 040 | — | –1 146 | –6 451 | –23 826 | –80 | –43 543 | 26 476 | –17 067 | |||||||||
Debt service | –2 237 | — | — | — | –546 | — | –2 783 | 957 | –1 826 | |||||||||
| Subtotal | –14 277 | — | –1 146 | –6 451 | –24 372 | –80 | –46 326 | 27 433 | –18 893 | |||||||||
| SURPLUS (DEFICIT) | –16 | 3 477 | — | — | 467 | –80 | 3 848 | — | 3 848 | |||||||||
5
NET FINANCIAL SURPLUS (REQUIREMENTS)
Net financial surpluses (requirements) reflect the current budgetary balance, as well as the year-over-year change in receipts and disbursements in the course of the government’s transactions.
For March 2019, the consolidated net financial surplus stood at $112 million, an increase of $1.9 billion over last year.
For the period from April 1, 2018 to March 31, 2019, the consolidated net financial surplus stood at $7.5 billion, an increase of $3.0 billion over last year.
| CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS | |||||||||||||
| (unaudited data, millions of dollars) | |||||||||||||
| March | April to March | ||||||||||||
| 2018 | 2019 | Change | 2017-2018 | 2018-2019 | Change | ||||||||
| GENERAL FUND | |||||||||||||
| Revenue | |||||||||||||
| Own-source revenue | 7 512 | 7 227 | –285 | 62 006 | 66 209 | 4 203 | |||||||
| Federal transfers | 1 554 | 1 681 | 127 | 20 072 | 20 938 | 866 | |||||||
| Total revenue | 9 066 | 8 908 | –158 | 82 078 | 87 147 | 5 069 | |||||||
| Expenditure | |||||||||||||
| Program spending | –8 623 | –9 233 | –610 | –72 428 | –76 413 | –3 985 | |||||||
| Debt service | –580 | –598 | –18 | –7 148 | –6 672 | 476 | |||||||
| Total expenditure | –9 203 | –9 831 | –628 | –79 576 | –83 085 | –3 509 | |||||||
| NET RESULTS OF CONSOLIDATED ENTITIES(3) | |||||||||||||
| Non-budget-funded bodies and special funds(4) | –1 158 | –827 | 331 | 225 | 451 | 226 | |||||||
| Health and social services and education networks(5) | –197 | –102 | 95 | –105 | –80 | 25 | |||||||
| Generations Fund | 296 | 652 | 356 | 2 293 | 3 477 | 1 184 | |||||||
| Total consolidated entities | –1 059 | –277 | 782 | 2 413 | 3 848 | 1 435 | |||||||
| SURPLUS (DEFICIT)(6) | –1 196 | –1 200 | –4 | 4 915 | 7 910 | 2 995 | |||||||
| Consolidated non-budgetary surplus (requirements) | –625 | 1 312 | 1 937 | –449 | –437 | 12 | |||||||
| CONSOLIDATED NET FINANCIAL SURPLUS (REQUIREMENTS) | –1 821 | 112 | 1 933 | 4 466 | 7 473 | 3 007 | |||||||
6
| BUDGET FORECASTS FOR 2018-2019 | ||||||||||
| (millions of dollars) | ||||||||||
| Preliminary results | ||||||||||
| March 2019 budget(1) | at June 21, 2019 | |||||||||
| $million | % change | (2) | Adjustements | $million | % change | (2) | ||||
| Own-source revenue excluding revenue from | ||||||||||
| government enterprises | ||||||||||
| Income and property taxes | ||||||||||
Personal income tax | 23 825 | 4.2 | 582 | 24 407 | 6.7 | |||||
Contributions for health services | 7 746 | 3.2 | 57 | 7 803 | 4.0 | |||||
Corporate taxes | 6 910 | 13.4 | 277 | 7 187 | 17.9 | |||||
| Consumption taxes | 19 989 | 4.3 | –216 | 19 773 | 3.2 | |||||
| Other sources | 1 774 | 3.6 | 96 | 1 870 | 9.2 | |||||
| Total own-source revenue excluding revenue from government enterprises | 60 244 | 5.1 | 796 | 61 040 | 6.4 | |||||
| Revenue from government enterprises | 4 600 | –1.3 | 569 | 5 169 | 10.9 | |||||
| Total own-source revenue | 64 844 | 4.6 | 1 365 | 66 209 | 6.8 | |||||
| Federal transfers | 20 999 | 4.6 | –61 | 20 938 | 4.3 | |||||
| TOTAL GENERAL FUND REVENUE | 85 843 | 4.6 | 1 304 | 87 147 | 6.2 | |||||
| Program spending | ||||||||||
| Health and Social Services | –38 575 | 5.1 | 276,7 | –38 298 | 4.3 | |||||
| Education and Culture | –20 384 | 7.4 | 69,5 | –20 314 | 7.0 | |||||
| Economy and Environment | –6 032 | 2.3 | –463 | –6 495 | 10.1 | |||||
| Support for Individuals and Families | –6 504 | 2.8 | 26,5 | –6 477 | 2.4 | |||||
| Administration and Justice(10) | –5 376 | 19.1 | 547 | –4 829 | 7.0 | |||||
| Total program spending | –76 869 | 6.1 | 456 | –76 413 | 5.5 | |||||
| Debt service | –6 775 | –5.2 | 103 | –6 672 | –6.7 | |||||
| TOTAL GENERAL FUND EXPENDITURE | –83 644 | 5.1 | 559 | –83 085 | 4.4 | |||||
| Net results of consolidated entities | ||||||||||
| Non-budget-funded bodies and special funds(4) | 276 | — | 175 | 451 | — | |||||
| Health and social services and education networks(5) | 25 | — | –105 | –80 | — | |||||
| Generations Fund | 3 106 | — | 371 | 3 477 | — | |||||
| TOTAL CONSOLIDATED ENTITIES | 3 407 | — | 441 | 3 848 | — | |||||
| SURPLUS (DEFICIT)(6) | 5 606 | — | 2 304 | 7 910 | — | |||||
| BALANCED BUDGET ACT | ||||||||||
| Deposits of dedicated revenues in the Generations Fund | –3 106 | — | –371 | –3 477 | — | |||||
| BUDGETARY BALANCE(7) | 2 500 | — | 1 933 | 4 433 | — | |||||
7
Notes | |
| (1) | The presentation of the budgetary information in this monthly report is consistent with that of the financial framework for the General Fund and consolidated entities as published in the additional tables available on the March 2019 budget documents’ webpage: www.budget.finances.gouv.qc.ca/budget/2019-2020/en/index.asp. However, it takes into account some reclassifications to conform to the 2018-2019 budgetary structure. |
| (2) | This is the annual change compared to actual results in 2017-2018, taking into account the transition to the 2018-2019 budgetary structure. |
| (3) | Details of transactions by type of entity are presented on page 5 of this report. |
| (4) | These results include consolidation adjustments. |
| (5) | The results of the networks are presented according to the modified equity method of accounting. |
| (6) | Balance within the meaning of the Public Accounts. |
| (7) | Budgetary balance within the meaning of the Balanced Budget Act. |
| (8) | Certain expenditures were reclassified between missions to take into account the transition to the 2018-2019 budgetary structure. |
| (9) | Consolidation adjustments include the elimination of General Fund program spending. |
| (10) | The amounts include the Contingency Fund reserve. |
The next monthly report, which will present the results of April and May 2019, will be published on August 30, 2019. 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: www.finances.gouv.qc.ca.
8