P.E.I. adds $107M in spending, retains surplus
Government projects $1.5M surplus
The P.E.I. government found itself in a position to go on something of a spending spree in the 2018-19 budget, presented Friday, and went for it.
Estimates for the coming year's budget include an additional $107 million in spending over the estimates for 2017-18, a 5.7 per cent increase, while posting a small surplus for both the previous and current fiscal years.
Health PEI is the biggest beneficiary of Finance Minister Heath MacDonald's first budget, with $32 million added to its budget, but many departments saw significant increases.
Communities, Land and Environment: +$8.6M
Education, Early Learning and Culture: +$18M
Family and Human Services: +$18M
Transportation, Infrastructure and Energy: +$11M
Workforce and Advanced Learning: +$6.7M
Despite all the extra spending, the government is estimating a $1.5 million surplus for 2018-19. The $600,000 surplus estimated last April for 2017-18 has been updated to a $1.2 million surplus.
Time to spend
In the budget lockup with the media before presenting his budget, MacDonald reflected on the decision to spend in this budget, rather than paying down the province's net debt, which currently stands at $2.2 billion.
MacDonald said after years of fiscal restraint, the Liberal government was ready to open up the wallet.
"I strongly believe now is the time to spend some money," he said.
"There's no worries in paying down on the net debt ... if our economy sustains, which we expect it will."
Despite all the new spending, MacDonald said there were still difficult decisions to be made, balancing the wants and needs in different departments.
"It's no fun. You never have enough," he said.
"It's a long, tedious, trying process."
Increase in federal funding
The province can thank the federal government for much of the revenue that is allowing the increased spending.
Federal transfers are up $60 million over last year's estimates. The increased transfers are spread out over a number of areas. Some of the largest increases are
Canada Health Transfer: +2.8M
Housing Trusts: +$6M
This budget also sees the introduction of the federal Low Carbon Economy Fund, worth $5.8 million
The P.E.I. government is also forecasting significant increases in its own revenue sources, a total of $43.3 million from income tax, property tax, sales tax, and corporate tax.
Road to the surplus
In 2012-13, the provincial government ran a $79.9 million deficit. That number gradually fell, until the first surplus in a decade was posted for this fiscal year.
2017-18: $1.2M (surplus)
2018-19: $1.5M (surplus)
· CBC News