Prince Eduardo Island is projecting the greatest budgetary deficit in its history for fiscal year 2025-2026, according to the last operational budget of the province, presented in the legislature on Thursday by Finance Minister Jill Burridge.
The budget projects revenues of $ 3.34 billion and expenses of $ 3.53 billion, resulting in an expected deficit of $ 183.9 million. That is more than triple the deficit of $ 59.5 million forecast in the past spring budget for the same fiscal year.
The previous record deficit was in 2020-2021, the first year of the COVID-19 pandemic, when the province recorded a deficit of $ 172.7 million.
While the government led by the new Prime Minister Rob Lantz expects the deficits to decrease in the coming years, they will remain high. The province projects a deficit of $ 167.8 million in 2026-2027 and $ 119.5 million in 2027-2028.
Burridge said that the growing costs are being driven by population growth, a population aging and global commercial uncertainties, the factors that it indicated are also affecting other parts of Canada.
“We are not different from other provinces,” he told reporters.
Burridge’s speech made promises on two Hot-Button medical care problems: the future of the Prince County Hospital in Summerside and the number of people still without a family doctor or a professional nurse to administer their primary health care.
“The steps we have taken to stabilize medical care are starting to work,” he told the legislature.
“We see it in a better access to care, in shorter waiting times and the return of full -time internal medicine coverage at the Prince County Hospital, allowing their ICU to open up this summer. And we will see it when 10,000 islanders withdraw from the patient record this year, which connect them the primary care they need and deserve.”
The budget was published in the midst of the growing global instability, including the increase in political tensions and commercial conflicts, with the president of the United States, Donald Trump, launching a commercial war with Canada and many other countries around the world.
“We know that the world around us is uncertain,” Burridge said. “Today we take another step forward: ensure our future strengthening our province, investing in people who make it great and guaranteeing a strong and sustainable future for all.”
Support the economy and workforce
To address uncertainty, the province is introducing a variety of fiscal reforms that will save the companies of the island for a total of $ 9.3 million to reinvest in its operations, Burridge said. These include the increase in the tax threshold of small businesses by $ 100,000 to $ 600,000, and reduce the corporate income tax rate from 16 % to 15 %.
In addition, the province will address personal income taxes. This includes immediately increase basic personal exemption to $ 14,650. Then, in January next year, the province will raise the five tax groups by 1.8 percent and increase the basic personal amount to $ 15,000.
The province also announced an increase in the minimum wage at $ 17 per hour, with details that will be disseminated soon, said finance minister.
Specific investments to support the economy and workforce include:
- $ 42 million for the fee and commercial response, including $ 32 million for a contingency fund for rates and commercials.
- $ 10 million for a tariff working capital program.
- The $ 3.6 million supports in the oyster industry, including a contingency fund of $ 3 million to respond to MSX challenges.
- $ 1.5 million for Rekilling and Cowing workers.
- $ 353,000 to expand air access.
- $ 100,000 to support young farmers through the Pei Young Farmers association.
Postsecundary students will see greater financial aid, with the scholarships of George Colles and Marion L. Reid, each of which increases to $ 3,500.
Medical Care Investments
Medical care remains a priority of main spending. The Health Pei budget will increase from $ 971.8 million in 2024-2025 to almost $ 1.1 billion for the current budget.
The Department of Health and Welfare will also see an increase of $ 153 million to $ 166.4 million.
The most prominent aspects include:
- $ 16.8 million for the new Faculty of Medicine based in UPEI.
- $ 21 million for long -term attention, which include newspaper increases for long -term private housing and financing to prepare 103 new long -term attention beds, with plans to add 175 new additional long -term beds in the future.
- $ 4.8 million to expand virtual attention.
- $ 4 million for support programs designed to help older people stay in their homes for a longer time, including the self -managed care program and the Best Caregiver Benefits Program.
- $ 1.1 million to expand health training support programs.
- $ 650,000 to hire internationally trained nurses.
- $ 500,000 to expand the student nursing employment program.
- $ 215,000 for a new promotion route for LPNS to become RNS. This leads to a total investment of $ 818,000.
- A new practice preparation evaluation program will help certify up to 40 internationally trained doctors annually.
Education
The expense for the Department of Education and the first years will increase from $ 104.1 million to $ 117.3 million.
Key investments include:
- $ 10.5 million for early childhood care, including the creation or transition of 190 affordable spaces. This will also include the continuation of the Expansion and Grant loans of the center of the first years and the increase in salaries for the staff of the centers of the first years.
- $ 9.2 million to invest in the educational system, including new funds for staff, give teachers more preparation and increase the number of first -line school personnel.
- $ 2.5 million in additional support for the School Food Program, which takes the total to $ 7.5 million in this fiscal year.
Investment in communities, infrastructure
As the province is launching a review of the Municipal Government Law, it has signed an agreement to provide provisional funds to the municipalities, and $ 5.5 million will be allocated for this.
Other key investments include:
- $ 3.2 million for the community sector, including the increase in the financing of food banks.
- $ 3 million to increase the assistance program for heating at home to $ 7.7 million.
- $ 810,000 to create a joint application equipment to keep safe communities, since the police fight medium -level drug trafficking and organized crime.
- $ 160,000 to maintain affordable traffic, including free traffic for students and subsidized passes for all islanders.
