Auditor general finds PQ deficit prediction more than $3B off

Quebecs actingauditorgeneral says the former Parti Qubcois government provided an ambitious portrait of public finances that was nowhere near the current fiscal reality facing the province.

In a new report tabled today, Michel Samson said the proposed brought forward by thePQ government last February grossly underestimated the provinces deficit, which the PQ projected at $1.75 billion for 2014-2015.

Samson said the actual deficit Quebec is facing is closer to $5.5 billion.

Samson also found that spending estimates provided by formerfinance minister Nicolas Marceau back in February to be unrealistic. Marceau said spending would increase by no more than two per cent, whereas Samson foundit grewby more than six per cent.

At the time, Marceau called the budget reasonable and said it was, the budget Quebec needs.

Today, the former finance minister was forced to defend his handling of public finances.

Marceau says the numbers suggest the government would have agreed to every spending request.

"This is a concept that is absurd which doesn't make sense."

• Parti Qubcois budget aimed at triggering election, opposition says

After winning the April 7 provincial election, Premier PhilippeCouillardpledged to open the province's books to a thorough, independent inspection by the auditor general to determine the true state of the Quebec's finances.

The Liberal government will no doubtuse Samson'sfindings to validate the cuts theysayare necessary if Quebecs lagging economy is to getback on track.

The extent of those cuts will be revealed when the government tables its first budget tomorrow.

Finance Minister Carlos Leitao posed with his new pair of shoes today, as is the tradition.

He chosewalking shoes, a symbol of the government's aimto get the economy moving again.

"Economic recovery shoes, if you will," he said.

• Get ready for belt-tightening, Premier Philippe Couillard tells Quebecers

Quebecers are bracing for what the government insists is a "transitional budget," but one that will nonetheless curb spending to get the provinces finances back toward the black.

Couillard haspromised to balance the budget in 2015-2016, whicha newConference Board of Canada report issued on Monday said won't be possiblewithout additionalcuts.

The Conference Board projected that Quebecs economy will continue tounder performmanyother Canadian provinces and that government revenues are likely to be weaker than projected for the next two years.

Overall spending would need to be cut by 3.6 per cent in 2014-15 to meet targets, the report states.