The Generations Fund is a trust fund created in 2006 by the Government of Quebec, at the initiative of the Youth Commission of the Quebec Liberal Party, to reduce public debt. Its management is entrusted to the Caisse de dépôt et placement du Québec.
The creation of the fund was announced in the budget speech in 2006. It aims to raise an amount sufficient to reduce the public debt of Quebec. As at March 31, 2012, the gross debt is expected to amount to $183.8 billion, equivalent to 55.0% of GDP. The government’s objective is to reduce the ratio of gross debt to GDP to 45% by March 31, 2026.
It is to deposit the revenue from several sources which water charges are subject Hydro-Quebec and the producers, a portion of the dividend paid by Hydro-Québec at the disposal of certain assets abroad and a possible levy on the abstraction of water accumulated during twenty years. The sources of income are independent of the Consolidated Government.