P.E.I. budget surplus nearly doubles to $1.1 million

CHARLOTTETOWN, P.E.I. – The provincial government says P.E.I.’s budget surplus has nearly doubled to $1.1 million.

In a fall fiscal update and second-quarter forecast Wednesday, Finance Minister Allen Roach said revenue is forecast to increase by $23 million, offset by more than $22 million in expenditures for 2017-18.

That’s in comparison to April’s operating budget, which forecast a surplus of $600,000.

Tax revenues increased $13.6 million, due primarily to higher corporate and sales taxes. Other revenue increases included additional federal funding for early learning and child care, an increase in federal funding from the Labour Market Development Agreement, and an increase in revenue through Island Investment Development Inc.

Added expenditures were for new teacher positions, a new Workforce Development Agreement, an increase in social assistance, the Disability Support Program and new initiatives for child protection, and $16.8 million for Health P.E.I.

The province attributes P.E.I.’s economic growth to the business community’s entrepreneurial spirit.

The fall fiscal update is available online at princeedwardisland.ca/en/information/finance/economic-and-fiscal-updates.

Highlights:

• The population has reached 152,000
• The number of new full-time jobs has increased by 2,500 over the past year
• Employment is growing at 2.8 per cent, the second fastest among the provinces
• Labour income is growing at 4.5 per cent, also second fastest among provinces
• The value of retail sales advanced by 8.4 percent, second fastest among provinces
• Housing starts have increased by nearly 44 per cent
• Source: P.E.I. government