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

Exhibit 99.18

ISSN 1718-8377

Volume 9, number 10 May 22, 2015

AS AT FEBRUARY 28, 2015

Highlights for February 2015

—  Budgetary revenue totalled $6.0 billion in February, down $39 million compared to last year. Own-source revenue was $4.6 billion, down $27 million, while federal transfers totalled $1.4 billion, a decrease of $12 million.

—  Program spending amounted to $5.0 billion, up $147 million from last year.

—  Debt service stood at $648 million, down $36 million compared to last year.

—  Taking into account the deposit of $144 million in the Generations Fund, the monthly budgetary balance within the meaning of the Balanced Budget Act showed a surplus of $577 million for February 2015.

On the basis of the cumulative results as at February 28, 2015, the budgetary balance within the meaning of the Balanced Budget Act was in deficit by $979 million, an improvement of $591 million over last year. The results are consistent with the budget forecast, which provides for an improvement in the budgetary balance on the order of $450 million ($2.8 billion to $2.35 billion) compared to the real budgetary balance for 2013-2014.

  Summary of consolidated budgetary transactions   (millions of dollars)   (Unaudited data)     

	February				April to February						Budget 2015-2016
	2014  (1)		2015		2013-2014  (1)		2014-2015		Change (%)		2014-2015		Forecast growth (%)
Budgetary revenue
Own-source revenue		4 603		4 576		48 097		49 115		2.1		54 339		2.1
Federal transfers		1 405		1 393		15 235		15 316		0.5		16 832		1.8
Total		6 008		5 969		63 332		64 431		1.7		71 171		2.0
Budgetary expenditure
Program spending		–4 815		–4 962		–57 826		–58 875		1.8		–65 704		2.1
Debt service		–684		–648		–7 708		–7 439		–3.5		–8 164		–3.2
Total		–5 499		–5 610		–65 534		–66 314		1.2		–73 868		1.5
Consolidated entities(2)
Non-budget-funded bodies and   special funds		24		239		861		1 092		—		426		—
Health and social services and   education networks		–22		–21		–229		–188		—		–79		—
Generations Fund		109		144		1 004		1 137		—		1 253		—
Total		111		362		1 636		2 041		—		1 600		—
Surplus (Deficit)		620		721		–566		158		—		–1 097		—
Balanced Budget Act														—
Deposits of dedicated revenues in   the Generations Fund		–109		–144		–1 004		–1 137		—		–1 253		—
BUDGETARY BALANCE WITHIN   THE MEANING OF THE   BALANCED BUDGET ACT		511		577		–1 570		–979		—		–2 350		—

  Note: The presentation of the budgetary information in the monthly report is consistent with that of the financial framework for the general fund and consolidated entities as published on page A.20 of The Québec Economic Plan of the March 2015 budget.

(1)	For comparison purposes, spending for 2013-2014 was adjusted to take into account the changes made by the Ministère de l’Éducation, du Loisir et du Sport and the Ministère de l’Enseignement supérieur, de la Recherche et de la Science in the monthly transfer expenditure apportionment rates for private institutions, as well as the actual results of all non-budget-funded bodies and special funds.
(2)	Details of transactions by type of entity are presented on page 6 of this report.

q Cumulative results as at February 28, 2015

¡ Budgetary balance

For the period from April 2014 to February 2015, the budgetary balance within the meaning of the Balanced Budget Act was in deficit by $979 million.

For fiscal 2014-2015 as a whole, Budget 2015-2016 maintains the forecast of a budgetary balance in deficit by $2 350 million.

¡ Budgetary revenue

As at February 28, 2015, budgetary revenue amounted to $64.4 billion, an increase of $1.1 billion, or 1.7%, compared to February 28, 2014.

— Own-source revenue stood at $49.1 billion, up $1.0 billion from the same time last year.

— Federal transfers amounted to $15.3 billion, up $81 million compared to February 28, 2014.

¡ Budgetary expenditure

Budgetary expenditure as of the beginning of the fiscal year totalled $66.3 billion, an increase of $780 million, or 1.2%, over last year.

— For the period from April 2014 to February 2015, program spending rose by $1.0 billion, or 1.8%, reaching $58.9 billion.

— The most significant changes were an increase in program spending of the Health and Social Services mission ($1 041 million) and the Education and Culture mission ($259 million), and a decrease in program spending of the Economy and Environment mission ($258 million).

— Debt service amounted to $7.4 billion, a decrease of $269 million, or 3.5%, compared to last year.

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¡ Consolidated entities

As at February 28, 2015, the results of consolidated entities showed a surplus of $2.0 billion. These results included:

— a surplus of $1.1 billion for non-budget-funded bodies and special funds;

— a $188-million deficit for the health and social services and education networks;

— dedicated revenue of $1.1 billion for the Generations Fund.

¡ Net financial requirements

As at February 28, 2015, consolidated net financial requirements stood at $5.3 billion, an increase of $1.7 billion compared to last year. Net financial 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.

Consolidated budgetary and financial transactions
(millions of dollars)							(Unaudited data)
	February						April to February
	2014   (1)		2015		Change		2013-2014   (1)		2014-2015		Change
Budgetary revenue
Own-source revenue		4 603		4 576		–27		48 097		49 115		1 018
Federal transfers		1 405		1 393		–12		15 235		15 316		81
Total		6 008		5 969		–39		63 332		64 431		1 099
Budgetary expenditure
Program spending		–4 815		–4 962		–147		–57 826		–58 875		–1 049
Debt service		–684		–648		36		–7 708		–7 439		269
Total		–5 499		–5 610		–111		–65 534		–66 314		–780
Consolidated entities(2)
Non-budget-funded bodies and special funds		24		239		215		861		1 092		231
Health and social services and education networks		–22		–21		1		–229		–188		41
Generations Fund		109		144		35		1 004		1 137		133
Total		111		362		251		1 636		2 041		405
Surplus (Deficit)		620		721		101		–566		158		724
Consolidated non-budgetary surplus   (requirements)		577		860		283		–3 032		–5 449		–2 417
CONSOLIDATED NET FINANCIAL SURPLUS   (REQUIREMENTS)		1 197		1 581		384		–3 598		–5 291		–1 693

(1) For comparison purposes, spending for 2013-2014 was adjusted to take into account the changes made by the Ministère de l’Éducation, du Loisir et du Sport and the Ministère de l’Enseignement supérieur, de la Recherche et de la Science in the monthly transfer expenditure apportionment rates for private institutions, as well as the actual results of all non-budget-funded bodies and special funds.

(2) Details of transactions by type of entity are presented on page 6 of this report.

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General fund revenue
(millions of dollars)									(Unaudited data)
	February								April to February
Revenue by source	2014			2015			Change (%)		2013-2014			2014-2015			Change (%)
Own-source revenue excluding government   enterprises
Income and property taxes
Personal income tax		1 421			1 443			1.5		17 747			17 779			0.2
Contributions to Health Services Fund		499			535			7.2		6 173			6 257			1.4
Corporate taxes		455			600			31.9		2 538			2 754			8.5
Consumption taxes		1 370			1 048			–23.5		15 294			15 938			4.2
Other sources		186			180			–3.2		1 546			1 552			0.4
Total own-source revenue excluding   government enterprises		3 931			3 806			–3.2		43 298			44 280			2.3
Revenue from government enterprises		672			770			14.6		4 799			4 835			0.8
Total own-source revenue		4 603			4 576			–0.6		48 097			49 115			2.1
Federal transfers
Equalization		652			773			18.6		7 180			8 511			18.5
Health transfers		453			405	(1)		–10.6		4 828			4 440	(1)		–8.0 (1)
Transfers for post-secondary education   and other social programs		128			133			3.9		1 405			1 456			3.6
Other programs		85			82			–3.5		871			909			4.4
Subtotal		1 318			1 393			5.7		14 284			15 316			7.2
Harmonization of the QST with the GST   – Compensation		87	(2)		—			—		951	(2)		—			—
Total federal transfers		1 405			1 393			–0.9		15 235			15 316			0.5
BUDGETARY REVENUE		6 008			5 969			–0.6		63 332			64 431			1.7

(1) In accordance with the policy directions of Budget 2014-2015, tabled on June 4, 2014, $430 million in health transfers was allocated in 2014-2015 to the Fund to Finance Health and Social Services Institutions (FINESSS), a consolidated entity. That allocation is spread over 2014-2015, at $36 million a month, and has already been deducted from the health transfers. Were it not for the allocation, the change would be 0.1% instead of -8.0%.

(2) Revenue from federal compensation for sales tax harmonization is recorded as spending funded by the compensation is recognized. Consequently, the payment of $1 467 million received in that respect in 2013-2014 was spread over 2013-2014 at $86 million a month for debt service expenditure and at $36 million a month for FINESSS.

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General fund expenditure
(millions of dollars)							(Unaudited data)
	February						April to February
Expenditure by mission	2014  (1),(2)		2015		Change (%)		2013-2014 (1),(2)		2014-2015		Change (%)
Program spending
Health and Social Services		2 206		2 297		4.1		27 885		28 926		3.7
Education and Culture		1 481		1 489		0.5		15 770		16 029		1.6
Economy and Environment		314		378		20.4		4 818		4 560		–5.4
Support for individuals and families		523		519		–0.8		5 777		5 820		0.7
Administration and Justice		291		279		–4.1		3 576		3 540		–1.0
Total program spending		4 815		4 962		3.1		57 826		58 875		1.8
Debt service		684		648		–5.3		7 708		7 439		–3.5
BUDGETARY EXPENDITURE		5 499		5 610		2.0		65 534		66 314		1.2

(1) For comparison purposes, spending for 2013-2014 was adjusted to take into account the changes made by the Ministère de l’Éducation, du Loisir et du Sport and the Ministère de l’Enseignement supérieur, de la Recherche et de la Science in the monthly transfer expenditure apportionment rates for private institutions, as well as the actual results of all non-budget-funded bodies and special funds.

(2) Certain expenditures were reclassified between missions to take into account the transition to the 2014-2015 budgetary structure as of September 2014.

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Detailed information on the transactions of consolidated entities

(millions of dollars)

(Unaudited data)

February 2015

Special funds

Generations Fund

Specified purpose accounts

Transfers (expenditures) related to the tax system

Non- budget- funded bodies

Health and     education         networks (1)

Total

Consolidation         adjustments (2)

Total

Revenue

1 111

144

58

433

1 706

—

3 452

–1 746

1 706

Expenditure

Expenditure

–681

—

–58

–433

–1 693

–21

–2 886

1 663

–1 223

Debt service

–161

—

—

—

–43

—

–204

83

–121

Total

–842

—

–58

–433

–1 736

–21

–3 090

1 746

–1 344

RESULTS

269

144

—

—

–30

–21

362

—

362

April 2014 to February 2015

Special funds

Generations Fund

Specified purpose accounts

Transfers (expenditures) related to the tax system

Non- budget- funded bodies

Health and     education         networks (1)

Total

Consolidation         adjustments (2)

Total

Revenue

10 279

1 137

834

5 632

20 800

—

38 682

–20 833

17 849

Expenditure

Expenditure

–7 658

—

–834

–5 632

–19 551

–188

–33 863

19 843

–14 020

Debt service

–1 952

—

—

—

–826

—

–2 778

990

–1 788

Total

–9 610

—

–834

–5 632

–20 377

–188

–36 641

20 833

–15 808

RESULTS

669

1 137

—

—

423

–188

2 041

—

2 041

(1) The results of the networks are presented according to the modified equity accounting method.

(2) Consolidation adjustments include the elimination of program spending from the general fund.

The next monthly report, as at March 31, 2015, will be published on July 3, 2015.

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.

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