18-K/A

FORM 18-K/A
For Foreign Governments and Political Subdivisions Thereof

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

AMENDMENT NO. 10
to
ANNUAL REPORT

of

QUÉBEC
(Name of Registrant)

Date of end of last fiscal year: March 31, 2020

SECURITIES REGISTERED*
(As of close of fiscal year)

Title of issue	Amounts as to which registration is effective	Names of exchanges on which registered
N/A	N/A	N/A

Name and address of person authorized to receive notices and
communications from the Securities and Exchange Commission:

Catherine Loubier
Délégation générale du Québec
One Rockefeller Plaza
26^th Floor
New York, N.Y. 10020-2102

Copies to:

Robert E. Buckholz	Alain Bélanger
Sullivan & Cromwell LLP	Ministère des Finances du Québec
125 Broad Street	390 boulevard Charest Est
New York, N.Y. 10004-2498	Québec, Québec, G1K 3H4, Canada

* The Registrant is filing this Annual Report on a voluntary basis.

The undersigned registrant hereby amends its Annual Report on Form 18-K for the fiscal year ended March 31, 2020 (the “Annual Report”) as follows:

The following additional exhibit is hereby added to the Annual Report:

Exhibit:
(99.12)	Monthly Report on Financial Transactions as at September 30, 2020.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment no. 10 to be signed on its behalf by its authorized agent.

QUÉBEC
By:	/s/ Alain Bélanger
Name:	Alain Bélanger
Title:	Assistant Deputy Minister

Date: January 19, 2021

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EX-99.12

Exhibit 99.12

Note to the reader

The Monthly Report on Financial Transactions provides an overview of the Québec government’s monthly financial results. It is produced to increase the transparency of public finances and to provide regular monitoring of the achievement of the budgetary balance target for the fiscal year. The financial information presented in this report is unaudited and is based on the accounting policies used in the government’s annual financial statements.⁽¹⁾

In March 2020, the World Health Organization declared a COVID-19 pandemic. The pandemic and the measures implemented to deal with it are having significant impacts, in particular on the Québec government’s financial situation.

The Monthly Report on Financial Transactions at October 31, 2020 will be published on February 12, 2021.

SUMMARY OF CONSOLIDATED RESULTS
(unaudited data, millions of dollars)
	September			April to September
	2019	2020	Change	2019-2020	2020-2021	Change	Change (%)
Own-source revenue	7 839	7 642	-197	45 375	40 899	-4 476	-9.9
Federal transfers	2 234	2 897	663	11 944	13 674	1 730	14.5
Consolidated revenue	10 073	10 539	466	57 319	54 573	-2 746	-4.8
Portfolio expenditures	-8 082	-9 353	-1 271	-48 400	-53 973	-5 573	11.5
Debt service	-675	-612	63	-3 878	-3 420	458	-11.8
Consolidated expenditure	-8 757	-9 965	-1 208	-52 278	-57 393	-5 115	9.8
SURPLUS (DEFICIT)(2)	1 316	574	-742	5 041	-2 820	-7 861	-
BALANCED BUDGET ACT
Deposits of dedicated revenues in the Generations Fund	-195	-195	-	-1 248	-1 263	-15	-
BUDGETARY BALANCE(3)	1 121	379	-742	3 793	-4 083	-7 876	-

Revenue from government enterprises decreased by $308 million (20.5%) to $1.2 billion. The decrease stems principally from Loto-Québec’s results, affected by the temporary closing of casinos, gaming halls, and sales outlets. Moreover, Hydro-Québec observed a drop in electricity consumption in Québec and a downturn in prices on export markets. This decrease is partially offset by an increase in Investissement Québec’s results, mainly as a result of the rise of the fair value of investments.

OWN-SOURCE REVENUE
(unaudited data, millions of dollars)
	September			April to September
	2019	2020	Change	2019-2020	2020-2021	Change	Change (%)
Income and property taxes
Personal income tax	3 266	2 968	-298	16 437	15 894	-543	-3.3
Contributions for health services	605	497	-108	3 276	2 924	-352	-10.7
Corporate taxes	602	486	-116	3 912	3 077	-835	-21.3
School property tax	122	76	-46	795	627	-168	-21.1
Consumption taxes	1 884	2 210	326	11 582	10 619	-963	-8.3
Tax revenue	6 479	6 237	-242	36 002	33 141	-2 861	-7.9
Duties and permits	311	296	-15	2 124	1 850	-274	-12.9
Miscellaneous revenue	1 034	893	-141	5 746	4 713	-1 033	-18.0
Other own-source revenue	1 345	1 189	-156	7 870	6 563	-1 307	-16.6
Total own-source revenue excluding revenue from government enterprises	7 824	7 426	-398	43 872	39 704	-4 168	-9.5
Revenue from government enterprises	15	216	201	1 503	1 195	-308	-20.5
TOTAL	7 839	7 642	-197	45 375	40 899	-4 476	-9.9

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FEDERAL TRANSFERS
(unaudited data, millions of dollars)
	September			April to September
	2019	2020	Change	2019-2020	2020-2021	Change	Change (%)
Equalization	1 094	1 104	10	6 562	6 626	64	1.0
Health transfers	540	569	29	3 241	3 411	170	5.2
Transfers for post-secondary education and other social programs	127	134	7	764	802	38	5.0
Other programs	473	1 090	617	1 377	2 835	1 458	105.9
TOTAL	2 234	2 897	663	11 944	13 674	1 730	14.5

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CONSOLIDATED EXPENDITURES BY PORTFOLIO(4)
(unaudited data, millions of dollars)
	September				April to September
	2019	(5)	2020	Change	2019-2020	(5)	2020-2021	Change	Change (%)
Éducation et Enseignement supérieur	2 197		2 193	-4	11 033		11 043	10	0.1
Santé et Services sociaux	3 690		4 045	355	21 758		25 315	3 557	16.3
Other portfolios(6)	2 195		3 115	920	15 609		17 615	2 006	12.9
Portfolio expenditures	8 082		9 353	1 271	48 400		53 973	5 573	11.5
Debt service	675		612	-63	3 878		3 420	-458	-11.8
TOTAL	8 757		9 965	1 208	52 278		57 393	5 115	9.8

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NET FINANCIAL SURPLUSES OR REQUIREMENTS

Composition of net financial surpluses or requirements

The government’s revenues and expenditures are established on an accrual basis of accounting. Revenues are recognized when earned and expenses when incurred, regardless of when receipts and disbursements occur.

Financial surpluses (requirements), on the other hand, consist of the difference between receipts and disbursements resulting from government activities. To meet its net financial requirements, the government uses a variety of financing sources, including cash and borrowings.

The various items for net financial requirements represent net receipts and disbursements generated by the government’s loans, interests in its enterprises, fixed assets and other investments, as well as by retirement plans and other employee future benefits, and by other accounts. This last item includes the payment of accounts payable and the collection of accounts receivable.

For the period of April to September 2020, net financial requirements amount to $3.4 billion and are due to:

• the $2.8-billion deficit resulting from the difference between government revenues and expenditures;

• the $1.6-billion financial requirements for investments, loans and advances, due primarily to an increase in loans to government enterprises and loans granted by the Economic Development Fund, especially through support measures for businesses affected by the COVID-19 pandemic and the growth in the consolidation value of government enterprises;⁽⁷⁾

• the $1.5-billion financial requirements for government capital investments, due to investments of $3.6 billion, partially offset by amortization expenses of $2.1 billion;⁽⁷⁾

• the $1.7-billion financial surplus related to retirement plans and other employee future benefits liabilities, resulting from an increase in these liabilities of $4.9 billion,⁽⁷⁾ partially offset by the payment of government employee benefits of $3.2 billion;

• the $836-million financial surplus from other accounts,⁽⁸⁾ which results in particular from the receipt in September 2020 of an amount from the federal government for the year 2020-2021 under the Safe Restart Agreement to finance efforts to mitigate the impact of COVID-19 and to support safe economic recovery.

NET FINANCIAL SURPLUSES OR REQUIREMENTS
(unaudited data, millions of dollars)
	April to September
	2019-2020	2020-2021
SURPLUS (DEFICIT)(2)	5 041	-2 820
Non-budgetary transactions
Investments, loans and advances	-844	-1 612
Capital investments	-1 020	-1 501
Retirement plans and other employee future benefits	1 670	1 696
Other accounts(8)	147	836
Total non-budgetary transactions	-47	-581
NET FINANCIAL SURPLUSES (REQUIREMENTS)	4 994	-3 401

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CHANGE IN THE BUDGETARY BALANCE IN 2020-2021

Results at September 30, 2020 showed a budgetary deficit of $4.1 billion for the first six months of the year.

According to the data presented in the Update on Québec’s Economic and Financial Situation of November 2020, a budgetary deficit of $15.0 billion is expected for 2020-2021, before the use of the stabilization reserve.

For the last six months of the fiscal year, that is, from October 2020 to March 2021, the budgetary deficit will come from:

• results excluding initiatives announced since the beginning of the fiscal year, which will contribute to increase the deficit by $623 million;

• initiatives announced in the June 2020 snapshot, Québec’s Economic and Financial Situation, of which a balance of $2.7 billion has yet to be recorded;

• initiatives announced in the November 2020 Update on Québec’s Economic and Financial Situation, of which a balance of $3.6 billion has yet to be recorded.

Moreover, the government has set up a provision of $4.0 billion to mitigate potential economic risk and fund additional support and recovery measures.

The use of the stabilization reserve will reduce the budgetary deficit to $3.0 billion.

CHANGE IN THE BUDGETARY BALANCE FOR 2020-2021
(millions of dollars)
	2020-2021
BUDGETARY BALANCE(3) - MONTHLY REPORT ON FINANCIAL TRANSACTIONS AT SEPTEMBER 30, 2020	-4 083
UPCOMING RESULTS FROM OCTOBER 2020 TO MARCH 2021
Results excluding initiatives
- Consolidated revenue	64 351
- Consolidated expenditure	-63 584
- Deposits of dedicated revenues in the Generations Fund	-1 390
Subtotal	-623
Balance of the initiatives in the June 2020 snapshot to be recorded	-2 735
Balance of the initiatives in the November 2020 update to be recorded	-3 560
Provision for economic risks and other support and recovery measures	-4 000
TOTAL	-10 917
PROJECTED BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE	-15 000
Use of the stabilization reserve	12 009
PROJECTED BUDGETARY BALANCE(9) - NOVEMBER 2020 UPDATE	-2 991

Note: Totals may not add due to rounding.

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APPENDIX 1: BUDGET FORECASTS - CHANGE SINCE THE MARCH 2020 BUDGET

BUDGET FORECASTS FOR 2020-2021
(millions of dollars)
	March 2020		November 2020		Change
	Budget	Adjustments	update	(10)	(%)	(11)
CONSOLIDATED REVENUE
Income and property taxes
Personal income tax	35 435	-137	35 298		4.4
Contributions for health services	6 896	-515	6 381		-2.1
Corporate taxes	8 530	-863	7 667		-10.9
School property tax	1 349	-192	1 157		-24.8
Consumption taxes	22 961	-2 959	20 002		-6.3
Tax revenue	75 171	-4 666	70 505		-1.8
Duties and permits	4 643	-441	4 202		-7.3
Miscellaneous revenue	10 975	-851	10 124		-7.6
Other own-source revenue	15 618	-1 292	14 326		-7.6
Total own-source revenue excluding revenue from government enterprises	90 789	-5 958	84 831		-2.9
Revenue from government enterprises	4 814	-1 208	3 606		-18.4
Total own-source revenue	95 603	-7 166	88 437		-3.6
Federal transfers	25 692	4 604	30 296		20.1
Total consolidated revenue	121 295	-2 562	118 733		1.5
CONSOLIDATED EXPENDITURE
Éducation et Enseignement supérieur	-25 734	-349	-26 083		6.9
Santé et Services sociaux	-47 760	-4 699	-52 459		16.6
Other portfolios(6)	-36 806	-4 158	-40 964		13.1
Portfolio expenditures	-110 300	-9 207	-119 507		13.1
Debt service	-8 266	693	-7 573		-1.3
Total consolidated expenditure	-118 566	-8 514	-127 080		12.2
Provision for economic risks and other support and recovery measures	-	-4 000	-4 000		-
SURPLUS (DEFICIT)(2)	2 729	-15 076	-12 347		-
BALANCED BUDGET ACT
Deposits of dedicated revenues in the Generations Fund	-2 729	76	-2 653		-
BUDGETARY BALANCE BEFORE USE OF THE STABILIZATION RESERVE	-	-15 000	-15 000		-
Use of the stabilization reserve	-	12 009	12 009		-
BUDGETARY BALANCE(9)	-	-2 991	-2 991		-

Note: Totals may not add due to rounding.

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APPENDIX 2: EXPENDITURES BY MISSION

Government expenditures are broken down into five missions that focus on public services. This breakdown of government expenditure in its main areas of activity is a stable indicator over time, as it is generally not influenced by ministerial changes. Moreover, since this breakdown is also used in the Public Accounts, its presentation in the Monthly Report on Financial Transactions allows for a better monitoring of actual results over the course of the year.

The missions dedicated to public services are:

• Health and Social Services, which consists primarily of the activities of the health and social services network and the programs administered by the Régie de l’assurance maladie du Québec;

• Education and Culture, which consists primarily of the activities of the education networks, student financial assistance, programs in the culture sector and immigration-related programs;

• Economy and Environment, which primarily includes programs related to economic development, employment assistance measures, international relations, the environment and infrastructure support;

• Support for Individuals and Families, which includes, in particular, last resort financial assistance, assistance measures for families and seniors, and certain legal aid measures;

• Administration and Justice, which consists of the activities of the legislature, central bodies and public security, as well as administrative programs.

CONSOLIDATED EXPENDITURES BY MISSION EXCLUDING DEBT SERVICE
(unaudited data, millions of dollars)
	September			April to September
	2019	(5)	2020	2019-2020	(5)	2020-2021
Health and Social Services	3 632		3 907	21 255		24 657
Education and Culture	2 211		2 282	11 429		11 582
Economy and Environment	979		1 354	6 383		7 387
Support for Individuals and Families	721		715	5 290		5 700
Administration and Justice	539		1 095	4 043		4 647
TOTAL	8 082		9 353	48 400		53 973

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Consolidated financial information

Consolidated results include the results of all entities that are part of the government’s reporting entity, i.e., that are under its control. To determine consolidated results, the government eliminates transactions carried out between entities in the reporting entity. Additional information on the government’s financial organization and the financing of public services can be found on pages 13 to 18 of the document titled “Budgetary Process and Documents: Public Financial Accountability” (in French only).

Notes

(1)	The government’s accounting policies can be found on pages 82 to 85 of the Public Accounts 2019-2020.
(2)	Balance as defined in the Public Accounts.
(3)	Budgetary balance within the meaning of the Balanced Budget Act.
(4)	Consolidated expenditures by mission are presented in Appendix 2.
(5)	Certain expenditures were reclassified between portfolios and between missions to take into account the transition to the 2020-2021 budgetary structure.
(6)	Other portfolios include inter-portfolio eliminations resulting from the elimination of reciprocal transactions between entities in different portfolios.
(7)	These items, which are included in the government’s budgetary surplus (deficit), are eliminated in non-budgetary transactions because they have no effect on cash flow.
(8)	The financial surpluses or requirements pertaining to other accounts can vary significantly from one month to the next, in particular according to the time when the government collects or disburses funds related to its activities. For example, when the last day of the month is not a business day, QST remittances are collected at the beginning of the following month, such that the equivalent of two months’ remittances can be collected in a given month.
(9)	Budgetary balance within the meaning of the Balanced Budget Act, after use of the stabilization reserve.
(10)	The presentation of the budgetary information in this monthly report is consistent with that of the financial framework as published in the Update on Québec’s Economic and Financial Situation - Fall 2020.
(11)	This is the annual change compared to preliminary results in 2019-2020.

For more information, contact the Direction des communications of the Ministère des Finances at 418 528-7382.

The report is also available on the Ministère des Finances website: www.finances.gouv.qc.ca.

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