Prince Edward Island tacked on more than $30 million to its projected deficit in the first quarter of 2026-2027, bringing the total to $440.4 million. The province’s report on the first quarter found the rising deficit is tied to a $53.4-million spike in expenditures for health care, social programs and diesel and heating fuel for schools. According to the report, Health PEI is forecasting a $39.2 million increase to their expenditures, citing pressures with out-of-province contracted services, agency staffing, wage levies and medical supplies. The Public Schools Branch and La Commission scolaire de langue française are projecting a $1.4-million increase due to high diesel and heating fuel prices driven by global supply chain disruptions. The net debt is expected to decrease by $2.7 million by the end of this fiscal year, according to the province. Total revenues are also expected to increase by $22.9 million from last spring’s operating budget. The province says labour income grew 7.1 per cent year-to-date through June while retail sales grew by $132 million. Tourism statistics also show an increase in all categories of traffic to the Island. “Our Island business community is vital to our economic success and businesses have demonstrated innovation and drive at every turn,” said Finance Minister Jill Burridge in a news release. “They create the jobs that support our families, support our communities, and supply the products the world is looking for.” For more P.E.I. news, visit our dedicated provincial page.
