Montreal Plans Budget Cuts for 2023

Montreal hosted a pre-budget consultation for the city’s 2023 budget, identifying high international investments into the city of Montreal and a low unemployment rate. But cuts have been discussed as the pandemic and the war in Ukraine have played an economic toll on Montreal.

Michel Leblanc, president and chief of the direction de la Chambre de commerce du Montreal métropolitain and Genevieve Chartrand, director of Government Relations at the Chamber of Commerce of Metropolitan Montreal presented budget cuts for the city for the next year.

Unemployment rates are low in Montreal, but international investments are high – including mRNA vaccine manufacturer Moderna is investing in Montreal by opening a facility in the city. Tourism is getting increasing with eased sanitary regulations and travel reopening. Montreal's credit ratings are also going back up.

But the city is still facing difficulties. Inflation is a threat to many companies, meaning there is uncertainty regarding future costs and supply chains. Labour shortage is also an issue in the city, which leads to uncertainty on human resources capacity. 

Many companies are in debt, restaurants are highly affected by this. Next fall, after summer season when business is usually booming and there are more clients, many businesses will have to re-evaluate if they can remain open. Inflation means a high interest rate, affecting all businesses, as it can impact borrowing capacity of both households and businesses.

Recommendations were given on what the city can do to not be too severely affected, including not following up inflation by raising taxes, as this will create a shock. However, the city must apply a maximum of 3% to a tax increase within the coming years.

It was also recommended that the city should prioritize these development zones: sector bridge Bonaventure, the former Royal Victoria Hospital, and the contaminated lands of the east.