To help the Quebec economy hobble through the recession, Premier Jean Charest's government will ride deficits totalling $7.7 billion over the next two years and hike the provincial sales tax in 2011.

Finance Minister Monique Jerome-Forget tabled the Quebec budget Thursday and predicted the province will run four consecutive deficits, beginning with shortfalls of $3.9 billion in 2009-10 and $3.8 billion the following year.

"Frankly, we're going through a major, major crisis right now," Jerome-Forget told a news conference in Quebec City.

"This is called a recession."

However, Quebec's striking deficit figures could be minor compared with what Ontarians are hammered with when their government tables its budget on March 26.

Ontario's Liberal government is expected to announce two straight years of deficits totalling $18 billion.

In Quebec's budget, Jerome-Forget announced plans to prop up the economy with a provincial sales tax hike -- to 8.5 per cent from 7.5 -- on Jan. 1, 2011.

The province already has one of the highest sales tax rates in the country.

"I'm not a happy camper to do that," she said of the plan to increase the tax.

"It's the least, I would say, damaging tax that we can implement."

Jerome-Forget also lamented Ottawa's recent, unilateral changes to its equalization payment formula, which means Quebec stands to get $770 million less than initially forecast over the next two years.

Quebec's Finance Department says Ontario, Alberta and British Columbia have reaped the most rewards from federal transfers over the past decade.

Jerome-Forget said she is currently in talks with federal Finance Minister Jim Flaherty to ensure Quebec receives extra money.

Her budget also outlines plans to aggressively hunt down tax dodgers and to index user fees -- as of Jan. 1, 2011 -- for public services such as birth, marriage and death certificates.

During the 2009-10 fiscal year, health and education will account for more than 60 per cent of the province's $66.1 billion in spending.

The province will also create a new stock savings plan aimed at easing financing for medium-sized businesses.

Jerome-Forget admitted she's worried about the province's debt load.

As of March 2008, Quebec's $150-billion gross debt was the equivalent of 49.9 per cent of its gross domestic product -- by far the biggest percentage among all Canadian provinces.

She said as the financial crisis strikes economies around the world, few corners of the globe are immune.

"It's bad, what can I tell you?" Jerome-Forget said.

Parti Quebecois finance critic Francois Legault accused the Liberals on Thursday of allowing the province's debt to balloon since they came to power in 2003.

Only a few months ago, the Quebec government was touting a much rosier economic outlook.

During last fall's election campaign, Jerome-Forget indicated Quebec would not run a deficit in 2009-10 despite the global financial crisis.

At that time, she forecast an economic growth of 0.6 per cent for the province in 2009-10.

But Jerome-Forget dimmed her projection last month, saying the province's economy had unexpectedly sustained "brutal deterioration" in January.

Quebec isn't the only Canadian province preparing to operate in the red this year.

In New Brunswick's budget, tabled Tuesday, the government turfed 700 public service jobs, slashed programs and sank deeper into debt by almost $1 billion.

And while the Olympic Games are expected to pour billions into the B.C. economy, the provincial government is forecasting a budgetary deficit for 2009-10.

Even Alberta is bracing for a possible deficit, which would be its first in 15 years.

But the economic outlook is different in potash-rich Saskatchewan. On Wednesday, the province tabled a surplus budget with tax cuts and cash for roads, hospitals and schools.

Jerome-Forget, meanwhile, predicts Quebec's economy will start improving as early as 2010, but said the unemployment rate should continue to rise before it comes back down.

Her department said Quebec's unemployment rate will likely climb to an average of 8.9 per cent in 2009 -- up from 7.2 per cent last year.

"We want things to pick up soon," she said.