Quebec budget 2016: Philippe Couillard out to prove austerity measures worthwhile

Finance Minister CarlosLeitao's main task today is to prove to Quebecers that all the pain from the belt-tightening of the past two years was worth it.

This is the third budget the Liberal government has brought down since its election on April 7, 2014.

The past two have focused on arriving at a balanced budget,with the promise that once achieved, the government will start reinvesting. As Premier Philippe Couillard said yesterday, now there is "some room to work with."

Here's some of what you should watch out for whenLeitao tables his budget at 4:00 p.m. ET.

1.Targeted spending, winners and losers

The premier has said once finances were under control, any new spending would be carefully targeted.

An examplecame in last fall's economic update, when the Liberalgovernment invested in schools in vulnerable communities.

While targeted spending will please therecipients of increased budgets, it inevitably means some will be left out and leftunhappy.

2.More money for education

Both Couillard and his finance minister, CarlosLeitao, say the education sectorwill see more money.

However, back in the fall,when Leitaoprovided an economic updateannouncing an immediate $20 million reinvestment in education and $80 million annually from that point onmany in the cash-strapped system said thatwas just a drop in the bucket.

If Leitao announces another increase for education today, as expected, just how far will the money go and will it be enough?

3. Ending the health tax

We also know that the province is speeding up its decision to abolish the health tax.

Last year, the finance minister announced it would be phased out by 2019.

Now the government is expected to eliminate it by 2018:just in time for the next election.

4. Kickstarting the economy?

Economic growth is sluggish, and while the low Canadian dollar is positive for Quebec's manufacturers, they are not benefiting as much as they would like to.

Quebec has the lowest productivity levels in the country, and many saythat's because equipment is not up to date, and technological change is lagging.

In this context, Couillard has talked about transitioning to a "new economy" and investing more in innovation, so the province can catch up to the rest of the world.

5. Laying the groundwork for 2018

This is a mid-mandate budget for Couillard.

Thefirst two years were all about the difficult and deeplyunpopular austerity measures.

By loading the front half of his mandate with tough decisions,Couillard is gambling thatby the time the 2018 electoral campaignrolls around, cuts to education and health care and loud anti-austerity demonstrationswill be a distant memory.

Today will be about trying to turn the pageand rebranding his governmentfrom one focused on cutting billions of dollars from government programsto one focused on responsible spending.

Will Quebecers buy it?