Quebec 18-K/A Annual report (foreign governments) (amended)

ISSN 1718-8369 Exhibit (99.19)

Volume 1, Number 11   April 27, 2007  

AS AT FEBRUARY 28, 2007

February 2007 highlights

• In February 2007, the consolidated budgetary balance for the purposes of the Balanced Budget Act shows a surplus of $478 million following an additional payment of $500 million to the Generations Fund. For the same period last year, revenue exceeded expenditure by $832 million.

• Budgetary revenue amounts to $5.0 billion, an increase of $340 million (7.3%) compared to last year.

• Program spending is up by $214 million (6.5%) compared to last year and stands at $3.5 billion.

• Debt service amounts to $550 million, comparable to last year’s amount.

• The net results of the Generations Fund amount to $524 million including the additional payment of $500 million made last February 15.

SUMMARY OF CONSOLIDATED BUDGETARY TRANSACTIONS

(millions of dollars)

(Unaudited data)

	February		April to February		February 2007 Budget
	2006 1	2007	2005-2006 1	2006-2007	2006-2007		Growth %
Budgetary Revenue
Own-source revenue	3 870	4 099	40 862	43 925	48 533		6.1
Federal transfers	816	927	8 926	10 058	10 956		9.9
Total	4 686	5 026	49 788	53 983	59 489		6.8
Budgetary Expenditure
Program spending	-3 298	-3 512	-44 149	-46 327	-51 519		4.6
Debt service	-555	-550	-6 278	-6 293	-6 990		1.7
Total	-3 853	-4 062	-50 427	-52 620	-58 509		4.3
Net results of consolidated organizations	-1	14	412	208	37		—
Deposit in the Generations Fund	—	-500	—	-500	-500		—
Allocation to the budgetary reserve	—	—	—	—	-500	2	—
Consolidated budgetary balance for the purposes of the Balanced Budget Act	832	478	-227	1 071	17		—
Net results of the Generations Fund 3	—	524	—	547	575		—
Consolidated budgetary balance	832	1 002	-227	1 618	592		—

1 Monthly allocation of financial transactions based on best available data and estimates.

2 The allocation to the budgetary reserve will be made in the March 2007 monthly report.

3 The Generations Fund began operations on January 1, 2007.

Cumulative results as at February 28, 2007

Budgetary balance

• For the period from April 2006 to February 2007, the consolidated budgetary balance for the purposes of the Balanced Budget Act shows revenue exceeding expenditure by $1.1 billion.

• This improvement of $1.3 billion compared to the results for the same period last year stems in particular from the additional profits earned by Hydro-Québec.

Budgetary revenue

• Since the beginning of the year, budgetary revenue amounts to $54.0 billion, an increase of $4.2 billion (8.4%) compared to last year.

• Own-source revenue stands at $43.9 billion, an increase of $3.1 billion (7.5%). Apart from Hydro-Québec’s financial results, this improvement stems from increased revenue from personal income tax.

• Federal transfers amount to $10.1 billion for the first eleven months of the current fiscal year, an increase of $1.1 billion over the same period in 2005-2006.

Budgetary expenditure

• As at February 28, 2007, budgetary expenditure totals $52.6 billion.

• Program spending is up by $2.2 billion (4.9%) compared to the same period last year. The most significant changes are in the health ($1.1 billion) and education ($622 million) sectors.

• Debt service amounts to $6.3 billion, comparable to last year’s amount.

Generations Fund

• As at February 28, 2007, the net results of the Generations Fund amount to $547 million.

Net financial surplus

• For the period from April 2006 to February 2007, the net financial surplus stands at $167 million.

• This increase of $2.4 billion compared to the same period in 2005-2006 stems chiefly from the dividend Hydro-Québec paid to the government in February 2007.

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CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS

(millions of dollars)

(Unaudited data)

	February			April to February
	2006 1	2007	Changes	2005-2006 1	2006-2007	Changes
Budgetary Revenue
Own-source revenue	3 870	4 099	229	40 862	43 925	3 063
Federal transfers	816	927	111	8 926	10 058	1 132
Total	4 686	5 026	340	49 788	53 983	4 195
Budgetary Expenditure
Program spending	-3 298	-3 512	-214	-44 149	-46 327	-2 178
Debt service	-555	-550	5	-6 278	-6 293	-15
Total	-3 853	-4 062	-209	-50 427	-52 620	-2 193
Net results of consolidated organizations	-1	14	15	412	208	-204
Deposit in the Generations Fund	—	-500	-500	—	-500	-500
Consolidated budgetary balance for the purposes of the Balanced Budget Act	832	478	-354	-227	1 071	1 298
Net results of the Generations Fund	—	524	524	—	547	547
Consolidated budgetary balance	832	1 002	170	-227	1 618	1 845
Consolidated non-budgetary surplus (requirements)	-288	1 986	2 274	-2 047	-1 451	596
CONSOLIDATED NET FINANCIAL SURPLUS (REQUIREMENTS)	544	2 988	2 444	-2 274	167	2 441

1 Monthly allocation of financial transactions based on best available data and estimates.

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CONSOLIDATED REVENUE FUND REVENUE

(millions of dollars)

(Unaudited data)

	February			April to February
Revenue by source	2006	2007	Changes %	2005-2006	2006-2007	Changes %
Budgetary Revenue
Own-source revenue excluding government enterprises
Income and property taxes
Personal income tax	1 435	1 529	6.6	14 893	16 332	9.7
Contributions to Health Services Fund	376	400	6.4	4 620	4 628	0.2
Corporate taxes	601	531	-11.6	3 919	3 800	-3.0
Consumption taxes	678	721	6.3	11 152	11 419	2.4
Other sources	294	251	-14.6	2 234	2 195	-1.7
Total	3 384	3 432	1.4	36 818	38 374	4.2
Revenue from government enterprises	486	667	37.2	4 044	5 551	37.3
Total own-source revenue	3 870	4 099	5.9	40 862	43 925	7.5
Federal transfers
Equalization	400	467	16.8	4 398	5 073	15.3
Health transfers	254	311	22.4	2 824	3 322	17.6
Transfers for post-secondary education and other social programs	79	93	17.7	889	966	8.7
Other programs	83	56	-32.5	815	697	-14.5
Total federal transfers	816	927	13.6	8 926	10 058	12.7
TOTAL BUDGETARY REVENUE	4 686	5 026	7.3	49 788	53 983	8.4

CONSOLIDATED REVENUE FUND EXPENDITURE

(millions of dollars)

(Unaudited data)

	February			April to February
Expenditures by mission	2006	2007	Changes %	2005-2006	2006-2007	Changes %
Budgetary Expenditure
Program spending
Health and Social Services	1 534	1 606	4.7	18 947	20 096	6.1
Education and Culture	719	790	9.9	11 742	12 364	5.3
Economy and Environment	372	409	9.9	5 074	5 240	3.3
Support for Individuals and Families	397	430	8.3	4 622	4 732	2.4
Administration and Justice	276	277	0.4	3 764	3 895	3.5
Total program spending	3 298	3 512	6.5	44 149	46 327	4.9
Debt service	555	550	-0.9	6 278	6 293	0.2
TOTAL BUDGETARY EXPENDITURE	3 853	4 062	5.4	50 427	52 620	4.3

For technical information concerning this monthly report, please contact Mario Albert at (418) 691-2225.

This publication is also available on the web at: www.finances.gouv.qc.ca.

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