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

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

AMENDMENT NO. 3

to

ANNUAL REPORT

of

QUÉBEC
(Name of Registrant)

Date of end of last fiscal year: March 31, 2021

SECURITIES REGISTERED*
(As of close of fiscal year)

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

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

Copies to:

* 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, 2021 (the “Annual Report”) as follows:

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

Exhibit:

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment no. 3 to be signed on its behalf by its authorized agent.

QUÉBEC

Date: September 27, 2021

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Exhibit 99.4

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Other own-source revenue increased by $989 million (32.9%) to $4.0 billion, due to:

• a $514-million increase (61.3%) in duties and permits, due in particular to the increase in mining revenues resulting from sustained metal prices in markets since 2020 and to the increase in revenues collected under Québec’s cap-and-trade system for greenhouse gas emission allowances;

• a $475-million increase (21.9%) in miscellaneous revenue, due in particular to higher revenues from the sale of goods and services due to the easing of lockdown measures related to the COVID-19 pandemic compared to the same period in 2020.

Revenue from government enterprises increased by $587 million (157.8%) to $959 million. This increase is mainly attributable to the impact of COVID-19 on the results of government enterprises in 2020-2021, particularly those of Loto-Québec and Hydro-Québec, as well as favourable results in 2021-2022 for Investissement Québec.

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Expenditure in the Éducation portfolio increased by $414 million (9.6%) to $4.7 billion. This increase is explained in particular by the reopening of schools, which were temporarily closed in the spring of 2020 due to the COVID-19 pandemic.

Expenditure in the Enseignement supérieur portfolio increased by $114 million (5.8%) to $2.1 billion.

Expenditure in other portfolios increased by $34 million (0.4%) to $8.7 billion.

Debt service expenditure increased by $383 million (21.2%) to $2.2 billion. This increase is mainly due to the rise in interest rates.

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NET FINANCIAL SURPLUSES OR REQUIREMENTS

For the period of April to June 2021, net financial requirements amount to $10.9 billion and are due to:

• the $443-million surplus resulting from the difference between government revenues and expenditures;

• the $5.9-billion financial requirements for investments, loans and advances, due primarily to an increase in short-term investments of $5.0 billion as part of overall cash management, as well as the growth in the consolidation value of government enterprises;⁽⁹⁾

• the $376-million financial requirements related to government capital investments, mainly due to investments of $1.5 billion, offset by amortization expenses of $1.1 billion;⁽⁹⁾

• the $783-million financial requirements related to retirement plans and other employee future benefits liabilities, resulting from the payment of government employee benefits of $1.6 billion, partially offset by the net cost of plans of $833 million;⁽⁹⁾

• the $3.4-billion financial requirements for other accounts⁽¹⁰⁾, needs that arise notably from disbursements relating to expenditure recorded at the end of 2020-2021;

• the $802-million financial requirements generated by the deposits in the Generations Fund.

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APPENDIX 1: BUDGET FORECASTS

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APPENDIX 2: EXPENDITURES BY MISSION

Government expenditures are broken down into five public service missions. This breakdown of the government’s expenditures into its main areas of activity is a stable indicator over time because it is usually not influenced by Cabinet shuffles. 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 public service missions 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 mainly of the activities of the legislature, central bodies and public security, as well as administrative programs.

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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).

Change in application of the accounting standard respecting transfer payments

The Québec government contributes to the financing of public infrastructure owned by third parties. In most cases, financing is provided through annual transfers paid according to a schedule that corresponds to the rate of repayment of the loans contracted by the recipients to carry out the projects.

For these infrastructure projects, the government changed the application of PS 3410, Transfer payments, to account for transfer expenditures based on the period of completion of eligible work by transfer recipients. Previously, transfer expenditures were recorded at the rate of disbursements authorized by Parliament and the balance of funded work was reported in contractual obligations. This change results in more timely recognition of transfer expenditures in the government’s consolidated financial statements.

In this monthly report, the estimated impact of this change has been accounted for retroactively and is presented in the consolidated expenditures in the line "Change in application of the accounting standard respecting transfer payments." Public Accounts 2020-2021, which will be published in the fall, will present the final impact of the application of the accounting standard, including on the government’s accumulated deficit as at March 31, 2021.

Notes

(1)	A summary of the government’s accounting policies can be found on pages 82 to 85 of Volume 1 of the Public Accounts 2019-2020.
(2)	Portfolio expenditure includes the impact of the change in application of the accounting standard respecting transfer payments.
(3)	Balance as defined in the Public Accounts.
(4)	Budgetary balance within the meaning of the Balanced Budget Act.
(5)	Consolidated expenditures by mission are presented in Appendix 2.
(6)	Certain expenditures were reclassified between portfolios and between missions to take into account the transition to the 2021-2022 budgetary structure.
(7)	Other portfolios include inter-portfolio eliminations resulting from the elimination of reciprocal transactions between entities in different portfolios.
(8)	The change in application of the accounting standard respecting transfer payments decreases cumulative expenditure at June 30, 2020 and 2021. Expenditures that were previously recorded in the first months of the fiscal year are now recorded based on the estimated progress of the work performed by the recipients.
(9)	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.
(10)	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.
(11)	The presentation of the budgetary information in this monthly report is consistent with that of the financial framework as published in the Québec Budget Plan - March 2021.
(12)	This is the annual change compared to results in 2020-2021.

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