Prince Edward Island’s projected deficit has grown to more than $440 million, according to a first-quarter report for the 2026-2027 fiscal year released by the province.
The report shows the province added more than $30 million to its deficit projection in the first quarter, bringing the total to $440.4 million. Officials tied the increase to a $53.4-million rise in expenditures across health care, social programs, and diesel and heating fuel costs for schools.
Health Spending Drives Higher Costs
Health PEI is forecasting a $39.2-million increase in its expenditures for the year, according to the report. The agency pointed to pressures including out-of-province contracted services, agency staffing needs, wage levies and the cost of medical supplies as contributing factors.
The Public Schools Branch and La Commission scolaire de langue française are also projecting higher costs, expecting a $1.4-million increase tied to elevated diesel and heating fuel prices. The province attributed those higher fuel costs to ongoing global supply chain disruptions.
Revenue Growth and Economic Indicators
Despite the wider deficit, the province’s report also pointed to some positive economic signals. Total revenues are expected to rise by $22.9 million compared with last spring’s operating budget, and net debt is projected to decrease by $2.7 million by the end of the fiscal year.
The report noted that labour income grew by 7.1 per cent year-to-date through June, while retail sales increased by $132 million. Tourism figures also showed increases across all categories of visitor traffic to the Island.
P.E.I. First-Quarter Fiscal Report Highlights
Finance Minister Jill Burridge highlighted the role of the province’s business community in the news release accompanying the report. She said Island businesses have shown innovation and drive, creating jobs that support families and communities while supplying products in demand elsewhere.
This article references reporting from:
