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

Exhibit (99.4)

Quarterly

Presentationof FinancialTransactions

2^nd quarter
September 30, 2004

ISSN 0706-3164

Legal deposit
Bibliothèque nationale du Québec, 2004

Publication date: November 2004

Website: http://www.finances.gouv.qc.ca

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Presentation of Financial Transactions
as at September 30, 2004¹

Section 1
Fiscal year 2003-2004
Results of consolidated financial transactions

Section 2
Fiscal year 2004-2005
Forecasts of consolidated financial transactions

Appendix 1
Tables of 2003-2004 and 2004-2005 consolidated
financial transactions

Appendix 2
Definition and list of consolidated organizations

1 The accounting policies are described in the Québec government’s consolidated financial statements.

3

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Section 1

Fiscal year 2003-2004

Results of consolidated financial transactions

Results of consolidated financial transactions for 2003-2004	7
Budgetary transactions of the Consolidated Revenue Fund	8
Net results of consolidated organizations	9
Consolidated non-budgetary transactions	10
Consolidated financing transactions	10

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Results of consolidated financial transactions for 2003-2004

Preliminary results for 2003-2004 indicate that the budget was balanced before inclusion of the exceptional losses of $358 million of the Société générale de financement du Québec (SGF).

TABLE 1

GOUVERNEMENT DU QUÉBEC
SUMMARY OF 2003-2004 CONSOLIDATED FINANCIAL TRANSACTIONS¹
(millions of dollars)

	Preliminary results
	March 30, 2004
	Budget		Revised		Change
Budgetary transactions of Consolidated Revenue Fund
Own-source revenue before exceptional losses of SGF		42 824		42 698		– 126
Federal transfers
- - Amount prior to deferral		8 216		8 209		– 7
- Deferral2		1 161		1 161		—
- Amount after deferral		9 377		9 370		– 7
Total revenue		52 201		52 068		– 133
Program spending		–45 800		–45 759		41
Debt service		–6 668		–6 655		13
Total expenditure		–52 468		–52 414		54
Net results of consolidated organizations		267		346		79
Budgetary balance before exceptional losses of SGF		0		0		0
Exceptional losses of SGF		–364		–358		6
Budgetary balance after exceptional losses of SGF		–364		–358		6
Non-budgetary transactions
Investments, loans and advances		–1 077		–1 125		– 48
Capital expenditures		– 978		–1 019		– 41
Retirement plans		2 221		2 219		– 2
Other accounts		–1 235		–1 183		52
Non-budgetary requirements		–1 069		–1 108		– 39
Net financial requirements		–1 433		–1 466		– 33
Financing transactions
Change in cash position		2 466		2 316		– 150
Change in direct debt		1 331		1 514		183
Retirement plans sinking fund		–2 364		–2 364		—
Total financing of transactions		1 433		1 466		33

1	According to the budgetary and financial structure in effect for fiscal year 2004-2005.
2	The amount that the Québec government must repay to the federal government over a period of 10 years beginning in 2006-2007.

7

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Budgetary transactions of the Consolidated Revenue Fund

Revenue before the exceptional losses of SGF is adjusted downward by $133 million compared with the preliminary results released at the time of the Budget Speech last March, while expenditure is reduced by $54 million.

Revenue

Own-source revenue, excluding government enterprises, is $326 million less than what was forecast in the Budget of last March. This revision is attributable chiefly to corrections made to the distribution of employer remittances among personal income tax, contributions to the Health Services Fund and contributions to the Régie des rentes du Québec. The result of these adjustments regarding 1998 to 2003 is to attribute $194 million of revenue to the Régie des rentes du Québec, a fiduciary organization of the government, and a corresponding reduction in revenue of the Consolidated Revenue Fund. The balance of the adjustments stems mainly from a lower amount of personal income tax than expected.

TABLE 2

ITEMS CONTRIBUTING TO THE CHANGE IN REVENUE OF THE
CONSOLIDATED REVENUE FUND FOR FISCAL YEAR 2003-2004
(millions of dollars)

Own-source revenue before exceptional losses of SGF		–126
Own-source revenue
– Excluding government enterprises	–326
– Government enterprises, before exceptional losses of SGF	200
Federal transfers		–7
Total change		–133

Revenues of government enterprises, before the exceptional losses of SGF, are increased by $200 million compared with the preliminary results released at the time of the Budget Speech last March. This rise is attributable mainly to the Société de l’assurance automobile du Québec (SAAQ) and stems from the government’s decision, in December 2003, to create a trust estate to separate the insurance mandate of the SAAQ from its other mandates. Bill 55 was tabled in the National Assembly to that effect last May and is now being studied by a parliamentary committee.

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Expenditure

Program spending is adjusted downward by $41 million compared with the preliminary results released at the time of the March 30, 2004 Budget Speech. The revision stems chiefly from the revaluation of accounting allowances of certain departments carried at the close of the fiscal year.

Debt service is revised downward by $13 million.

Net results of consolidated organizations

The net results of consolidated organizations have improved by $79 million. The results of many organizations have been adjusted, including mainly those of the Société d’habitation du Québec and the Agence métropolitaine de transport.

TABLE 3

SUMMARY OF 2003-2004 NET RESULTS OF
CONSOLIDATED ORGANIZATIONS
(millions of dollars)

	Preliminary results
	March 30, 2004
	Budget		Revised		Change
Own-source revenue		2 194		2 318		124
Federal transfers		498		564		66
Total revenue		2 692		2 882		190
Expenditure excluding debt service		–1 829		–1 950		– 121
Debt service		– 596		– 586		10
Total expenditure		–2 425		–2 536		– 111
Net results		267		346		79

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Consolidated non-budgetary transactions

Turning to non-budgetary transactions, the upward revision of $39 million to non-budgetary requirements results from the combined effect of many factors.

First, funding requirements for investments, loans and advances have been raised by $48 million. This change is essentially attributable to a rise in the value of investments in government enterprises stemming chiefly from the exclusion of the automobile insurance plan from the government reporting entity. This rise is partially offset by a reduction in funding requirements for loans to individuals, corporations and others, notably regarding student loans assumed by the government to ensure their collection.

Second, funding requirements for capital expenditures have been revised to $1 019 million, up by $41 million.

Lastly, financial requirements for other non-budgetary accounts are adjusted downward by $52 million. These “other accounts”, which include, among others, cash and bills on hand, outstanding cheques, accounts receivable and accounts payable, are subject to substantial fluctuations because of the variability of government cash inflows and disbursements.

On the whole, the adjustments to budgetary and non-budgetary transactions have produced an improvement of $33 million in net financial requirements compared with the preliminary results of the March 30, 2004 Budget Speech.

Consolidated financing transactions

Preliminary results show an increase of $33 million in financing transactions compared with those of the Budget of last March 30.

10

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Section 2

Fiscal year 2004-2005

Forecasts of consolidated financial transactions

Forecasts of consolidated financial transactions for 2004-2005	13
Budgetary transactions of the Consolidated Revenue Fund	14
Net results of consolidated organizations	16
Consolidated non-budgetary transactions	17
Consolidated financing transactions	17
Budgetary results as at September 30, 2004	18

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Forecasts of consolidated financial transactions for 2004-2005

The objective of a balanced budget for fiscal year 2004-2005, as set in the Budget of March 30, 2004, is maintained. Federal transfers are adjusted upward by $780 million following an increase of $501 million stemming from the September 2004 health agreement and the rise of $279 million in equalization revenue under the new framework announced by the federal government last October 26.

The rise in federal transfers is essentially offset by a reduction of $760 million in own-source revenue, including a downward adjustment of $510 million regarding revenue from government enterprises.

TABLE 4

GOUVERNEMENT DU QUÉBEC
SUMMARY OF 2004-2005 CONSOLIDATED FINANCIAL TRANSACTIONS

(millions of dollars)

	March 30, 2004		Revised
	Budget		forecasts		Change
Budgetary transactions of Consolidated Revenue Fund
Own-source revenue		45 358		44 598		– 760
Federal transfers
- Amount prior to deferral		7 276		8 056		780
- Deferral1		1 200		1 200		—
- Amount after deferral		8 476		9 256		780
Total revenue		53 834		53 854		20
Program spending		– 47 151		– 47 151		—
Debt service		– 6 939		– 6 959		– 20
Total expenditure		– 54 090		– 54 110		-20
Net results of consolidated organizations		256		256		—
Budgetary balance		0		0		0
Non-budgetary transactions
Investments, loans and advances		– 996		– 996		—
Capital expenditures		– 1 158		– 1 158		—
Retirement plans		2 118		2 118		—
Other accounts		– 428		– 428		—
Non-budgetary requirements		– 464		– 464		—
Net financial requirements		– 464		– 464		—
Financing transactions
Change in cash position		1 644		1 644		—
Change in direct debt		1 365		1 365		—
Retirement plans sinking fund		– 2 545		– 2 545		—
Total financing of transactions		464		464		—

1 The amount that the Québec government must repay to the federal government over a period of 10 years beginning in 2006-2007.

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Budgetary transactions of the Consolidated Revenue Fund

The revenue forecast for the Consolidated Revenue Fund for 2004-2005 is revised to $53 854 million. Furthermore, the Consolidated Revenue Fund’s expenditure is also revised to $54 110 million.

Revenue

The revenue forecast of the 2004-2005 Budget Speech set own-source revenue at $45 358 million and federal transfers at $8 476 million for fiscal year 2004-2005. Overall, the revenue forecast is adjusted upward by $20 million. Accordingly, own-source revenue is adjusted downward by $760 million while federal transfers are raised by $780 million.

TABLE 5

ITEMS CONTRIBUTING TO THE CHANGE IN REVENUE OF THE
CONSOLIDATED REVENUE FUND FOR FISCAL YEAR 2004-2005
(millions of dollars)

Own-source revenue		– 760
Personal income tax	– 225
Contributions to Health Services Fund	– 50
Consumption taxes	45
Other revenue	– 20
Government enterprises
- Asset sales	– 485
- Other adjustments	– 25
Federal transfers		780
Equalization	279
Canada Health and Social Transfer	501
Total change		20

Forecast revenue from personal income tax and contributions to the Health Services Fund is reduced by $225 million and $50 million respectively. These adjustments stem from growth in wages and salaries in 2004 that was less than expected.

Revenue from consumption taxes is $45 million more than expected at the time of the Budget last March 30. This increase reflects the impact on sales tax revenue of more robust consumer spending than expected. However, this is partially offset by downward adjustments to the tax on tobacco products that reflect the actual results of the last quarter of 2003-2004 and lower than expected demand for these products.

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Presentation of Financial Transactions

2^nd quarter – September 30, 2004

Furthermore, the forecast for other own-source revenue is adjusted downward by $20 million. Lower revenue regarding sales of goods and services is partially offset by higher revenue from natural resources, mainly regarding forest royalties. This is attributable in particular to stronger softwood lumber prices on the North American market since the beginning of the year that have led, in particular, to a greater volume of timber cut than expected.

Lastly, revenue of government enterprises is revised downward by $510 million. This change stems chiefly from a $485-million reduction in the initial objective of $880 million in asset sales. The government now expects to realize a total net gain of $395 million from asset sales, including Hydro-Québec’s realization of a net gain of $266 million from the sale of its interest in Noverco Inc. This downward adjustment stems from delays in selling certain assets. These delays are necessary to achieve the best price for these assets.

The upward revision of $780 million in revenue from federal transfers arises from a gain of $501 million stemming from the health agreement reached by the federal government and the Québec government last September 16 as well as the rise of $279 million from the reform of equalization announced by the federal government last October 26. In addition, the federal government agreed to Québec’s repaying, starting in 2006-2007 rather than 2005-2006, and over ten years rather than five years, the $2.4-billion shortfall in federal transfers Québec suffered in 2003-2004 and 2004-2005. The effect of this decision will be to raise Québec’s federal transfer revenue by $472 million in 2005-2006.

Despite this upward adjustment to federal transfers, the Québec government has said that it is dissatisfied with the changes made to equalization for many reasons:

• the reform does not correct the main shortcomings of the program, in particular concerning the five-province standard and the incomplete coverage of provincial revenue;

• with its unprecedented surpluses, the federal government could have undertaken a thorough reform of the equalization program so that it responds better to the objectives entrenched in the Canadian Constitution;

• lastly, the federal proposals are unfair since some provinces were granted special arrangements to correct their specific problems.

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

TABLE 6

ADJUSTMENTS TO QUÉBEC’S FEDERAL TRANSFER REVENUE
FOR FISCAL YEAR 2004-2005

(millions of dollars)

Canada Health and Social Transfer
- 2004-2005 Budget	2 890
- Fall 2004	3 391
- Impact of the September 2004 agreement on health	501
Equalization
- 2004-2005 Budget	4 942
- Fall 2004	5 221
- Impact of the new federal framework for equalization	279
Total	780

Expenditure

The forecast of the Budget Speech last March 30 is maintained at $47 151 million for program spending. Possible overruns of some $500 million have been identified since the beginning of fiscal year and the government is taking steps to absorb or offset them with equivalent savings.

The forecast for debt service in the Budget of last March is revised upward by $20 million because interest rates have risen more than expected.

Net results of consolidated organizations

There is no change to forecast net results of consolidated organizations, set in the last Budget Speech.

TABLE 7

SUMMARY OF 2004-2005 NET RESULTS OF
CONSOLIDATED ORGANIZATIONS

(millions of dollars)

	March 30, 2004		Revised
	Budget		forecasts		Change
Own-source revenue		2 395		2 395		—
Federal transfers		495		495		—
Total revenue		2 890		2 890		—
Expenditure excluding debt service		-1 980		-1 980		—
Debt service		–654		–654		—
Total expenditure		–2 634		–2 634		—
Net results		256		256		—

Consolidated non-budgetary transactions

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

There is no change to forecast non-budgetary requirements of $464 million set in the last Budget Speech.

Consolidated financing transactions

Forecast financing transactions, as set in the March 30, 2004 Budget, are also unchanged.

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Budgetary results as at September 30, 2004

Consolidated Revenue Fund revenue

Own-source revenue, before the exceptional losses of SGF, is up 7.4% for the first six months of 2004-2005 compared to the corresponding period in 2003-2004, while an increase of 4.4% is forecast for the year as a whole. The expected slowdown in growth from now until the end of the year is attributable in particular to the impact of the first payment arising from the reform of government assistance to families in January 2005 and to factors that are specific to the first half of the fiscal year, related notably to personal income tax filings, corporate tax remittance procedures and asset sales of government enterprises. The effect of these factors on the growth rate of own-source revenue will fall off during the year.

Federal transfers in the first half are down 36.2% compared to the same period in 2003-2004, while a decline of 1.2% is expected for the year as a whole. This difference in growth rates stems chiefly from the reception, in the first quarter of 2003-2004, of all the amounts deposited in trust by the federal government further to its announcement on health in February 2003. These amounts are non-recurring in 2004-2005.

Consolidated Revenue Fund expenditure

Turning to program spending, the results recorded as at September 30, 2004 are up 3.7% compared with the results for the first six months of 2003-2004, whereas an increase of 3.0% is expected on an annual basis. The slightly higher six-month growth stems in particular from grant payments by certain departments that were made earlier than in the first half of 2003-2004.

Debt service is up 3.1% in the first half of fiscal year 2004-2005 compared to the same period in 2003-2004. This increase is consistent with the rise of 4.6% expected for the year as a whole.

Net results of consolidated organizations

The net results of consolidated organizations as at September 30, 2004 are 25.5% lower compared with those of the first half of last year, which is comparable to their expected change on an annual basis, i.e. a drop of 26.0%.

Gilles Godbout
Deputy Minister of Finance

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Appendix 1

Tables of 2003-2004 and 2004-2005
consolidated financial transactions

Summary of consolidated financial transactions	20
Consolidated Revenue Fund revenue	21
Consolidated Revenue Fund expenditure	22
Consolidated non-budgetary transactions	23
Consolidated financing transactions	24
New borrowings as at September 30, 2004	25

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

TABLE 8

GOUVERNEMENT DU QUÉBEC
SUMMARY OF CONSOLIDATED FINANCIAL TRANSACTIONS	(Unaudited results)
(millions of dollars)

	2003-2004		2004-2005						Results as at September 30
							Annual
	Preliminary		Budget		Revised		change						Change
	results 1		Speech		forecasts		%		2003-2004 1		2004-2005		%
Budgetary transactions of Consolidated Revenue Fund2
Own-source revenue before exceptional losses of SGF		42 698		45 358		44 598		4,4		19 641		21 089		7,4
Federal transfers		9 370		8 476		9 256		-1,2		4 906		3129		-36,2
Total revenue		52 068		53 834		53 854		3,4		24 547		24 218		-1,3
Program spending		-45 759		-47 151		-47 151		3,0		-23 376		-24 248		3,7
Debt service		-6 655		-6 939		-6 959		4,6		-3 275		-3 377		3,1
Total expenditure		-52 414		-54 090		-54 110		3,2		-26 651		-27 625		3,7
Net results of consolidated organizations2		346		256		256		-26,0		157		117		-25,5
Budgetary balance before exceptional losses of SGF		0		0		0		—		-1 947		-3 290		69,0
Exceptional losses of SGF		-358		—		—		—		—		—		—
Budgetary balance after exceptional losses of SGF		-358		0		0		—		-1 947		-3 290		69,0
Non-budgetary transactions
Investments, loans and advances		-1 125		-996		-996				-696		-1 159
Capital expenditures		-1 019		-1 158		-1 158				-390		-353
Retirement plans		2 219		2 118		2 118				1 206		1 178
Other accounts		-1 183		-428		-428				-1 596		-1 184
Non-budgetary requirements		-1 108		-464		-464		-58,1		-1 476		-1 518		2,8
Net financial requirements		-1 466		-464		-464		-68,3		-3 423		-4 808		40,5
Financing transactions
Change in cash position		2 316		1 644		1 644				3 671		3 242
Change in direct debt		1 514		1 365		1 365				634		2 647
Retirement plans sinking fund		-2 364		-2 545		-2 545				-882		-1 081
Total financing of transactions		1 466		464		464		-68,3		3 423		4 808		40,5

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.
1	The preliminary results for 2003-2004 have been restated on the basis of the budgetary and financial structure in effect for fiscal year 2004-2005.
2	The budgetary transactions of the Consolidated Revenue Fund, which include the profits of government enterprises, are presented separately from those of consolidated organizations.

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Presentation of Financial Transactions
2^nd quarter – September 30, 2004

TABLE 9
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED REVENUE FUND REVENUE (millions of dollars)	(Unaudited results)

	2003-2004		2004-2005						Results as at September 30
							Annual
	Preliminary		Budget		Revised		change						Change
Revenue by source	results		Speech		forecasts		%		2003-2004		2004-2005		%
Own-source revenue
Income and property taxes
Personal income tax		16 135		17 201		16 976		5,2		7 582		8 113		7,0
Contributions to Health Services Fund		4 649		4 869		4 819		3,7		2 398		2 412		0,6
Corporate taxes1		3 892		4 248		4 248		9,1		1 447		1 671		15,5
		24 676		26 318		26 043		5,5		11 427		12 196		6,7
Consumption taxes
Sales		8 943		9 232		9 327		4,3		4 668		4 688		0,4
Fuel		1 685		1 681		1 681		-0,2		809		802		-  0,9
Tobacco		889		986		936		5,3		480		502		4,6
		11 517		11 899		11 944		3,7		5 957		5 992		0,6
Duties and permits
Motor vehicles		707		713		713		0,8		288		295		2,4
Alcoholic beverages		144		160		160		11,1		73		80		9,6
Natural resources		108		80		105		-2,8		65		86		32,3
Other		186		174		174		-6,5		79		79		—
		1 145		1 127		1 152		0,6		505		540		6,9
Miscellaneous
Sales of goods and services		399		437		392		-1,8		118		104		- 11,9
Interest		317		362		362		14,2		180		216		20,0
Fines, forfeitures and recoveries		471		392		392		-16,8		222		221		- 0,5
		1 187		1 191		1 146		-3,5		520		541		4,0
Revenue from government enterprises before exceptional losses of SGF
Société des alcools du Québec		571		601		601		5,3		260		276		6,2
Loto-Québec		1 393		1 419		1 419		1,9		680		774		13,8
Hydro-Québec		2 049		2 040		2 040		-0,4		462		709		53,5
Other		160		763		253		58,1		-170		61		—
		4 173		4 823		4 313		3,4		1 232		1 820		47,7
Total own-source revenue before exceptional losses of SGF		42 698		45 358		44 598		4,4		19 641		21 089		7,4
Federal transfers
Equalization		4 065		4 942		5 221		28,4		2 206		1 850		-16,1
Canada Health and Social Transfer		4 266		2 890		3 391		-20,5		2 517		1 361		-45,9
Other transfers related to fiscal arrangements		64		25		25		-60,9		—		—		—
Other programs		975		619		619		-36,5		183		-82		—
Total federal transfers		9 370		8 476		9 256		-1,2		4 906		3 129		-36,2
Total revenue before exceptional losses of SGF		52 068		53 834		53 854		3,4		24 547		24 218		-1,3

1 Including tax on corporate profits, tax on capital and tax on insurance company premiums, as well as tax on telecommunications, gas and electricity.

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Presentation of Financial Transactions
2^nd Quarter – September 30, 2004

TABLE 10
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED REVENUE FUND EXPENDITURE	(Unaudited results)
(millions of dollars)

	2003-2004		2004-2005								Results as at September 30
									Annual
	Preliminary		Budget			Revised			change						Change
Departments and agencies	results		Speech			forecasts			%		2003-2004		2004-2005		%
Program spending
Assemblée nationale		94		94			94			—		46		44		- 4,3
Personnes désignées par l’Assemblée nationale		89		54			54			- 39,3		68		37		- 45,6
Affaires municipales, Sport et Loisir		1 575		1 688			1 688			7,2		949		1 098		15,7
Agriculture, Pêcheries et Alimentation		662		647			647			- 2,3		424		431		1,7
Conseil du trésor et Administration gouvernementale		434		568	1		568	1		30,9		198		195		- 1,5
Conseil exécutif		165		262	1		262	1		58,8		76		94		23,7
Culture et Communications		512		531			531			3,7		298		334		12,1
Développement économique et régional et Recherche		728		812	1		812	1		11,5		315		420		33,3
Éducation		11 502		11 778			11 778			2,4		6 088		6 217		2,1
Emploi, Solidarité sociale et Famille		5 990		5 971			5 971			- 0,3		3 043		3 046		0,1
Environnement		183		166			166			- 9,3		83		82		- 1,2
Finances (excluding debt service)		111		221	1		221	1		99,1		61		44		- 27,9
Justice		576		563			563			- 2,3		286		290		1,4
Relations avec les citoyens et Immigration		224		176			176			- 21,4		108		100		- 7,4
Relations internationales		112		100			100			- 10,7		61		51		- 16,4
Ressources naturelles, Faune et Parcs		497		432			432			- 13,1		276		245		- 11,2
Revenu		717		618			618			- 13,8		254		233		- 8,3
Santé et Services sociaux		19 074		20 071			20 071			5,2		9 534		10 069		5,6
Sécurité publique		935		885			885			- 5,3		508		436		- 14,2
Transports		1 511		1 645			1 645			8,9		668		738		10,5
Travail		68		64			64			- 5,9		32		44		37,5
Anticipated lapsed appropriations		—		- 150			- 150			—		—		—		—
Appropriations carried over in 2005-2006		—		- 45			- 45			—		—		—		—
Total program spending		45 759		47 151	2		47 151			3,0		23 376		24 248		3,7
Debt service
Direct debt service		3 913		4 131			4 151			6,1		1 887		2 026		7,4
Interest on retirement plans		2 742		2 808			2 808			2,4		1 388		1 351		- 2,7
Total debt service		6 655		6 939	2		6 959			4,6		3 275		3 377		3,1
Total expenditure		52 414		54 090			54 110			3,2		26 651		27 625		3,7

1	These amounts contain provisions allowing transfers of appropriations to other departments in the course of the fiscal year ending March 31, 2005.
2	Expenditure Budget tabled for 2004-2005.

22

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

TABLE 11
GOUVERNEMENT DU QUÉBEC CONSOLIDATED NON-BUDGETARY TRANSACTIONS (millions of dollars)	(Unaudited results)

	2003-2004		2004-2005						Results as at September 30
							Annual
	Preliminary		Budget		Revised		change						Change
	results		Speech		forecasts		$		2003-2004		2004-2005		$
Investments, loans and advances
Consolidated Revenue Fund
Government enterprises		-512		-816		-816		-304		-593		-1 143		-550
Individuals, corporations and others		19		-20		-20		-39		-111		-182		-71
Municipalities and municipal bodies		5		2		2		-3		3		1		-2
		-488		-834		-834		-346		-701		-1 324		-623
Consolidated organizations		-637		-162		-162		475		5		165		160
Total investments, loans and advances		-1 125		-996		-996		129		-696		-1 159		-463
Capital expenditures
Consolidated Revenue Fund
Net investments		-159		-305		-305		-146		-46		-48		-2
Amortization		200		212		212		12		97		104		7
		41		-93		-93		-134		51		56		5
Consolidated organizations		-1 060		-1 065		-1 065		-5		-441		-409		32
Total capital expenditures		-1 019		-1 158		-1 158		-139		-390		-353		37
Retirement plans
Employer and employee contributions		5 373		5 317		5 317		-56		2 668		2 677		9
Benefits and other payments		-3 154		-3 199		-3 199		-45		-1 462		-1 499		-37
Total retirement plans		2 219		2 118		2 118		-101		1 206		1 178		-28
Other accounts
Consolidated Revenue Fund		-1 220		-435		-435		785		-1 627		-1 249		378
Consolidated organizations		37		7		7		-30		31		65		34
Total other accounts		-1 183		-428		-428		755		-1 596		-1 184		412
Total non-budgetary requirements		-1 108		-464		-464		644		-1 476		-1 518		-42

Note: A negative entry indicates a financial requirement and a positive entry, a source of financing.

23

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

TABLE 12
GOUVERNEMENT DU QUÉBEC
CONSOLIDATED FINANCING TRANSACTIONS	(Unaudited results)
(millions of dollars)

	2003-2004		2004-2005				Annual		Results as at September 30
	Preliminary		Budget		Revised		change						Change
	results		Speech		forecasts		$		2003-2004		2004-2005		$
Change in cash position
Consolidated Revenue Fund		2 284		1 644		1 644		- 640		4 642		4 426		- 216
Consolidated organizations		32		—				- 32		- 971		- 1 184		- 213
Total change in cash position		2 316		1 644		1 644		- 672		3 671		3 242		- 429
Change in direct debt
Consolidated Revenue Fund
New borrowings
In Canadian dollar		5 070								2 269		3 460		1 191
In US dollar		—								—		1 022		1 022
In Australian dollar		209								—		—		—
Change in the debt resulting from currency swap transactions		- 249								- 335		228		563
		5 030		5 704		5 704		674		1 934		4 710		2 776
Repayment of borrowings
In Canadian dollar		- 2 492								- 1 114		- 787		327
In US dollar		- 892								- 947		- 406		541
In Euro		- 499								- 91		- 1 228		- 1 137
In Yen		- 252								- 252		- 95		157
In Swedish crowns		—								—		- 89		- 89
Change in the debt resulting from currency swap transactions		- 763								- 146		- 614		- 468
Contributions to the sinking fund for Québec government borrowings		100								31		- 90		- 121
		- 4 798		- 5 303		- 5 303		- 505		- 2 519		- 3 309		- 790
		232		401		401		169		- 585		1 401		1 986
Consolidated organizations
New borrowings		2 516		2 180		2 180		- 336		1 629		1 436		- 193
Repayment of borrowings		- 1 234		- 1 216		- 1 216		18		- 410		- 190		220
		1 282		964		964		- 318		1 219		1 246		27
Total change in direct debt		1 514		1 365		1 365		- 149		634		2 647		2 013
Retirement plans sinking fund1		- 2 364		- 2 545		- 2 545		- 181		- 882		- 1 081		- 199
Total financing of transactions		1 466		464		464		- 1 002		3 423		4 808		1 385

Note:	A negative entry indicates a financial requirement and a positive entry, a source of financing. For the change in cash position, a negative entry indicates an increase and a positive entry, a decrease.
1	This sinking fund receives amounts to be used to cover retirement benefits payable by the government under the public and parapublic sector retirement plans. The investment income of this fund is reinvested in it.

24

Presentation of Financial Transactions

2^nd quarter – September 30, 2004

TABLE 13

GOUVERNEMENT DU QUÉBEC
NEW BORROWINGS AS AT SEPTEMBER 30, 2004
(millions of dollars)

												Face value
					Interest							in millions		Amount in
	Date of		Date of		rate			Price to		Yield to		of monetary		Canadian
	issue		maturity		(%) 1			investor 2		investor 2		units		dollar 3
Consolidated Revenue Fund
In Canadian dollar												CAN$
Treasury bills	Various		Various			—	4	Various		Various			—		—	5
Québec savings products
Savings bonds	Various		Various		Various				100,000	Various			26		26
Transitory investments	Various		Various		Various				100,000	Various			6		6
Investment savings plan	Various		Various		Various				100,000	Various			25		25
Bonds	Various		Various		Various			Various		Various			282		282
													339		339
Bonds
Bonds		2004-04-13		2036-12-01		5,750			101,011		5,681		388		392
Bonds		2004-05-04		2036-12-01		5,750			99,790		5,764		500		499
Bonds		2004-07-12		2036-12-01		5,750			97,979		5,890		150		147
Bonds		2004-08-03		2014-12-01		5,500			100,736		5,405		500		504
Bonds		2004-08-20		2014-12-01		5,500			102,694		5,158		400		411
Real return bonds	Various		Various		Various			Various		Various			252		322	6
Immigrant Investor
Program	Various		Various		Various			Various		Various			334		269
Canada Pension Plan
Investment Fund	Various		Various		Various				100,000	Various			5		5
													2 529		2 549
Medium-term notes
On the Canadian market	Various		Various		Various			Various		Various			402		400
On the European market		2004-07-26		2014-06-03		5,125	7	Various		Various			175		172
													577		572
													3 445		3 460
In US dollar												US$
Bonds		2004-05-05		2014-05-05		4,875			99,243		4,972		750		1 022	8
Change in the debt resulting from currency swap transactions															228
															4 710
Consolidated organizations															1 436
Total new borrowings															6 146

1	Interest payable semi-annually except if another frequency is indicated in a note.
2	Based on semi-annual interest payments.
3	Borrowings in foreign currencies are shown in the Canadian equivalent of the amount received, using the exchange rate of the Bank of Canada at noon on the date of issue.
4	“Zero-coupon” type borrowing.
5	Represents the change in the amount outstanding during the year.
6	The principal and the interest rate of these bonds are adjusted according to the change in the Consumer Price Index in Canada.
7	Interest is payable annually.
8	The original borrowing totals US$1 000 million, i.e. C$1 362 million. An amount of C$340 million from this borrowing was advanced to the Financing Fund for the purpose of lending to consolidated organizations.

25

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Appendix 2

Definition and list of consolidated organizations (as at March 31, 2004)

Definition

Organizations and special funds under government control that have their own management and financial authority delegated to them by legislation.

The results of these organizations are consolidated line by line with those of the Consolidated Revenue Fund.

Organizations

Agence de l’efficacité énergétique

Agence métropolitaine de transport

Agence nationale d’encadrement du secteur financier (Autorité des marchés financiers)

Bibliothèque nationale du Québec

Bureau d’accréditation des pêcheurs et des aides-pêcheurs du Québec

Bureau de décision et de révision en valeurs mobilières

Centre de recherche industrielle du Québec

Commissaire de l’industrie de la construction

Commission de la capitale nationale du Québec

Commission de reconnaissance des associations d’artistes et des associations de producteurs

Commission des lésions professionnelles

Commission des normes du travail

Commission des relations du travail

Commission des services juridiques

Conseil des arts et des lettres du Québec

Corporation d’urgences-santé

École nationale de police du Québec

École nationale des pompiers du Québec

Fondation de la faune du Québec

Fonds d’aide aux recours collectifs

Fonds d’assurance-prêts agricoles et forestiers

Fonds de la recherche en santé du Québec

Fonds québécois de la recherche sur la nature et les technologies

Fonds québécois de la recherche sur la société et la culture

Héma-Québec

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Organizations (continued)

Institut de la statistique du Québec

Institut de tourisme et d’hôtellerie du Québec

Institut national de santé publique du Québec

Investissement Québec

La Financière agricole du Québec

Musée d’art contemporain de Montréal

Musée de la civilisation

Musée national des beaux-arts du Québec

Office de la sécurité du revenu des chasseurs et piégeurs cris

Office des professions du Québec

Office Québec-Amériques pour la jeunesse

Régie de l’assurance maladie du Québec

Régie de l’énergie

Régie des installations olympiques

Régie du cinéma

Sidbec

Société de développement de la Zone de commerce international de Montréal à Mirabel

Société de développement des entreprises culturelles

Société de la Place des Arts de Montréal

Société de télédiffusion du Québec (Télé-Québec)

Société des Traversiers du Québec

Société d’habitation du Québec

Société du Centre des congrès de Québec

Société du Grand Théâtre de Québec

Société du Palais des congrès de Montréal

Société du parc industriel et portuaire de Bécancour

Société du parc industriel et portuaire Québec-Sud

Société immobilière du Québec

Société nationale de l’amiante

Société québécoise d’assainissement des eaux

Société québécoise de récupération et de recyclage

Société québécoise d’information juridique

Tribunal administratif du Québec

Special funds

Fonds d’aide à l’action communautaire autonome

Fonds d’aide aux victimes d’actes criminels

Fonds d’amortissement afférent à des emprunts de collèges d’enseignement général et professionnel du Québec

Fonds d’amortissement afférent à des emprunts de commissions scolaires du Québec

Fonds d’amortissement afférent à des emprunts d’établissements universitaires du Québec

Presentation of Financial Transactions
2^nd quarter – September 30, 2004

Special funds (continued)

Fonds d’amortissement afférent à des emprunts d’organismes de santé et de services sociaux du Québec

Fonds d’assistance financière pour certaines régions sinistrées

Fonds de conservation et d’amélioration du réseau routier

Fonds de développement du marché du travail

Fonds de développement régional

Fonds de financement

Fonds de gestion de l’équipement roulant

Fonds de la gestion des immeubles du Québec à l’étranger

Fonds de l’assurance médicaments

Fonds de l’état civil

Fonds de l’industrie des courses de chevaux

Fonds de l’information gouvernementale

Fonds de partenariat touristique

Fonds de perception

Fonds des contributions des automobilistes au transport en commun

Fonds des pensions alimentaires

Fonds des registres du ministère de la Justice

Fonds des services de police

Fonds des services de santé

Fonds des services gouvernementaux

Fonds des technologies de l’information du Conseil du trésor

Fonds des technologies de l’information du ministère de l’Emploi, de la

Solidarité sociale et de la Famille

Fonds des technologies de l’information du ministère du Revenu

Fonds d’information foncière

Fonds d’information géographique

Fonds du Centre financier de Montréal

Fonds forestier

Fonds Jeunesse Québec

Fonds pour la vente de biens et services du ministère des Transports

Fonds québécois d’initiatives sociales

Fonds relatif à la tempête de verglas

Fonds spécial olympique