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

Exhibit 99.5

Volume 1, Number 4 September 21, 2006

AS AT JULY 31, 2006

July 2006 highlights

o In July 2006, the Québec government’s revenue exceeded its spending by $698 million. The excess for the same period last year was $832 million.

o This difference is attributable essentially to an exceptional gain of $133 million recorded last year by Investissement Québec on the sale of shares in the Québec Cartier Mining Company.

o Budgetary revenue for the month is very close to $5.0 billion, up $226 million (4.8%) over July 2005.

o Program spending is up $241 million (6.9%) compared to last year, at $3.7 billion.

o Debt service is comparable to last year’s figure, with a rise of $6 million.

SUMMARY OF CONSOLIDATED BUDGETARY TRANSACTIONS

(millions of dollars) (Unaudited data)

	July				April to July				March 23, 2006 Budget
									Growth 2
	2005 1		2006		2005-2006 1		2006-2007		2006-2007		%
Budgetary transactions of the Consolidated Revenue Fund
Own-source revenue		3 929		4 048		14 175		15 801		47 105		3.6
Federal transfers		823		930		3 226		3 620		10 796		8.3
Budgetary revenue		4 752		4 978		17 401		19 421		57 901		4.4
Program spending		- 3 489		- 3 730		- 17 727		- 18 622		- 50 873		3.9
Debt service		- 586		- 592		- 2 242		- 2 307		- 7 205		5.2
Budgetary expenditure		- 4 075		- 4 322		- 19 969		- 20 929		- 58 078		4.1
Net results of consolidated organizations		155		42		237		144		177		- 48.1
Consolidated budgetary balance for the purposes of the Balanced Budget Act		832		698		- 2 331		- 1 364		0		¾
Net results of the Generations Fund 3		¾		¾		¾		¾		74		¾
Consolidated budgetary balance		832		698		- 2 331		- 1 364		74		¾

1	Monthly allocation of financial transactions based on best available data and estimates.
2	According to the 2006-2007 Budget.
3	The Generations Fund will go into operation on January 1, 2007.

Cumulative results to July 31, 2006

Budgetary balance

o For the period from April to July 2006, in accordance with the historical trend, revenue is running $1.4 billion behind expenditure.

— This difference will be eliminated over the course of fiscal 2006-2007.

o However, this is an improvement of $967 million compared to the budgetary balance at the same time last year. This improvement essentially reflects the exceptional gain from the sale of Hydro-Québec’s participation in Transelec Chile.

Budgetary revenue

o Total budgetary revenue amounts to $19.4 billion, up $2.0 billion compared to last year.

o Own-source revenue amounts to $15.8 billion, up $1.6 billion (11.5%). This increase essentially reflects an exceptional gain from the sale of Hydro-Québec’s participation in Transelec Chile and the introduction of Child Assistance measure, as explained in previous monthly reports.

o As at July 31, 2006, federal transfers amount to $3.6 billion, up 12.2% compared to the same period in 2005.

Budgetary expenditure

o Budgetary expenditure for the first four months of the current fiscal year stands at $20.9 billion.

o Program spending is up $895 million compared to the same period last year. The largest changes are in the health ($403 million) and education ($215 million) sectors.

o The increase in debt service since the beginning of the fiscal year is 2.9%.

Net financial requirements

o Net financial requirements are down $571 million. However, this improvement is less than that of the budgetary balance ($967 million) since, in particular, the profits earned by Hydro-Québec are not paid to the government as dividends until the end of the fiscal year.

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CONSOLIDATED BUDGETARY AND FINANCIAL TRANSACTIONS
(millions of dollars)	(Unaudited data)

	July						April to July
	2005 1		2006		Changes		2005-2006 1		2006-2007		Changes
Budgetary transactions of the Consolidated Revenue Fund
Own-source revenue		3 929		4 048		119		14 175		15 801		1 626
Federal transfers		823		930		107		3 226		3 620		394
Budgetary revenue		4 752		4 978		226		17 401		19 421		2 020
Program spending		- 3 489		- 3 730		- 241		- 17 727		- 18 622		- 895
Debt service		- 586		- 592		- 6		- 2 242		- 2 307		- 65
Budgetary expenditure		- 4 075		- 4 322		- 247		- 19 969		- 20 929		- 960
Net results of consolidated organizations		155		42		- 113		237		144		- 93
Consolidated budgetary balance		832		698		- 134		- 2 331		- 1 364		967
Consolidated non-budgetary requirements		- 36		1 139		1 175		- 1 352		- 1 748		- 396
Consolidated net financial requirements		796		1 837		1 041		- 3 683		- 3 112		571

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)

	July						April to July
					Changes						Changes
Revenue by source	2005		2006		%		2005-2006		2006-2007		%
Own-source revenue excluding government enterprises
Income and property taxes
Personal income tax		1 453		1 518		4.5		4 777		5 231		9.5
Contributions to Health Services Fund		492		492		¾		1 755		1 799		2.5
Corporate taxes		257		418		62.6		1 267		1 419		12.0
Consumption taxes		1 087		1 091		0.4		4 171		4 204		0.8
Other sources		239		179		- 25.1		864		847		- 2.0
Total own-source revenue excluding government enterprises		3 528		3 698		4.8		12 834		13 500		5.2
Revenue from government enterprises		401		350		- 12.7		1 341		2 301		71.6
Total own-source revenue		3 929		4 048		3.0		14 175		15 801		11.5
Federal transfers
Equalization		399		466		16.8		1 599		1 805		12.9
Health transfers		258		300		16.3		1 032		1 201		16.4
Transfers for post-secondary education and other social programs		82		87		6.1		327		347		6.1
Other programs		84		77		- 8.3		268		267		- 0.4
Total federal transfers		823		930		13.0		3 226		3 620		12.2
Budgetary revenue		4 752		4 978		4.8		17 401		19 421		11.6

CONSOLIDATED REVENUE FUND EXPENDITURE
(millions of dollars) (Unaudited data)

	July						April to July
					Changes						Changes
Expenditures by mission	2005		2006		%		2005-2006		2006-2007		%
Health and Social Services		1 608		1 657		3.0		7 137		7 540		5.6
Education and Culture		613		651		6.2		5 183		5 398		4.1
Economy and Environment		521		569		9.2		2 046		2 222		8.6
Support for Individuals and Families		399		451		13.0		1 736		1 751		0.9
Administration and Justice		348		402		15.5		1 625		1 711		5.3
Total program spending		3 489		3 730		6.9		17 727		18 622		5.0
Debt service		586		592		1.0		2 242		2 307		2.9
Budgetary expenditure		4 075		4 322		6.1		19 969		20 929		4.8

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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