Quebec’s Money Mystery: Billions from Ottawa, Potholes from Pluto

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By Evi Omani, Canamericanews.com

Bonjour, taxpayers! Evi Omani here, reporting from the only place in North America where you can hydroplane on a pothole, swerve around orange cones, and still not know where the money went. That’s right, we’re talking about Quebec-the province with a world-class hydro sector, a strategic port, and, somehow, the worst roads this side of Mars. First a word from today’s sponsor:

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Let’s follow the money, shall we?

$29.3 Billion Reasons to Ask: Where’s the Asphalt?

In 2025–26, Quebec is getting $29.3 billion in federal transfers. That’s not a typo. Over the last decade, Quebec has vacuumed up $129.9 billion in equalization payments. That’s more than half of all the equalization cash in Canada.
With that kind of dough, you’d expect streets paved with gold-or at least with something smoother than a bag of frozen peas.

But drive through Montreal after a spring thaw and you’ll wonder if the city’s been in a meteor shower. So, what gives?

Why Does Quebec Get So Much?

• Fiscal Capacity: Quebec’s ability to raise revenue is below the national average. Why? Lower per capita income and a private sector that’s about as robust as a limp baguette.

• Population Size: Quebec’s big, so it gets the biggest slice of the equalization pie-even if the per-person slice is smaller than in, say, the Maritimes.

• Hydro Revenue Headache: Hydro-Québec is a juggernaut, but if it jacks up prices and makes more money, Ottawa claws back 70% of the new profit by reducing equalization payments. So, why bother making more when you can just ask for more?

Why Are the Roads Still a Disaster?

• Climate: Freeze-thaw cycles turn asphalt into Swiss cheese. Not Quebec’s fault, but still.

• Chronic Underinvestment: For years, governments have patched instead of paved. Now, it’s catch-up time, and the bill’s bigger than a Cirque du Soleil tent.

• Budget Priorities: That $29.3 billion gets spread across health, education, social programs, and, somewhere near the bottom, infrastructure. By the time it’s roadwork’s turn, there’s barely enough left for a bucket of tar.

• Structural Incentives: Some say the equalization formula actually rewards provinces for not getting too rich. Why fix the fiscal gap if it means less free money?

Hydro Dams, Mega Ports… Still Broke?

You’d think a province with a hydro empire and a port that’s a gateway to the Atlantic would be rolling in cash. But thanks to the equalization formula, every extra dollar Quebec earns can mean a smaller cheque from Ottawa.
It’s like a game of “Don’t Get Too Successful,” and Quebec’s playing to win.

Summary Table: Quebec’s Fiscal Circus

Conclusion: Where’s the Money, Quebec?

Quebec gets more money than a lottery winner, but when it comes to roads, it’s still playing scratch tickets. Blame the weather, blame the budget, blame the system-but don’t blame the drivers swerving to avoid the next crater.

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Evi Omani, signing off from the land of orange cones and invisible billions. À la prochaine!