07:29 AM EST, 11/21/2024 (MT Newswires) -- The Canadian province of Quebec will table on Thursday a mid-year FY24/25 fiscal update at a time when finances have been on a gradually deteriorating path, said Bank of Montreal (BMO).

The province closed out FY23/24 with a C$6.0 billion deficit versus C$1.6 billion expected in the original budget plan and C$4.2 billion estimated in the 2024 budget, noted the bank. At the same time, the province forecasted an even wider C$8.8 billion shortfall before transfers to the Generations Fund for FY24/25, due to widening spending priorities.

The economy in Quebec is performing better than expected in the spring, but BMO will be watching for any further deterioration in the fiscal plan -- or any improvement. The borrowing program was pegged at C$36 billion for FY24/25, but almost 90% has already been completed.

The Canadian dollar (CAD or loonie) is bucking the negative sentiment somewhat, firming to $1.397/USD -- 71.6 US cents added the bank.