The Investment Industry Association of Canada (IIAC) is applauding plans for deficit reduction that were announced Wednesday in Quebec’s budget, but says it’s disappointed that the government isn’t doing more to revitalize the initial public offering (IPO) market.

The IIAC said that the province’s investment industry welcomes the fiscal measures announced in the budget. “Of particular interest to the association’s investment dealer firms is the news that the government is committed to eliminating the budget deficit in the 2015-2016 fiscal year,” notes IIAC managing director, Richard Morin.

“There is no question that elimination of the province’s $3.1 billion budget deficit is the critical next step in helping Quebec regain its economic vitality and prosperity. It is a long time coming and the IIAC hopes the government will be steadfast in its efforts to live within its means,” he said.

After the budget deficit is eliminated, the IIAC says that the government should focus on paying down the province’s debt and cutting taxes, in order to stoke future economic growth.

“We recognize that this is a ‘transitional’ budget and expect structural reforms to be announced as a result of the formation of the Quebec Taxation Review Committee and the Ongoing Program Review Committee,” Morin said.”Those structural reforms should be aimed at reducing the role of government in the economy and fostering an environment where the private sector can fully play its role and create jobs and wealth for all Quebecers,” he added.

In the budget, Finance minister Carlos Leitão announced the creation of a committee, chaired by Luc Godbout, to examine the tax situation in Quebec and recommend measures to ensure that the tax system adequately funds public services while fostering economic growth; and, the program review committee, which will focus on redirecting government action to priority programs, where the need is greatest.

While the IIAC applauded the government’s commitment to fiscal discipline, the group also said that it was disappointed that the budget did not take up its recommendations designed to revitalize Quebec’s struggling IPO market.

“The IIAC will continue to work with private sector stakeholders on reviving the IPO market and hopes the work of the Quebec Taxation Review Committee will provide an opportunity for a debate on the impact of taxes on the sources of equity capital for Quebec businesses,” it said.