A lobster boat grounded on the rocks at the wharf in Stanley Bridge, P.E.I., on Sunday Sept. 25, 2022. THE CANADIAN PRESS/Brian McInnis
CHARLOTTETOWN – Prince Edward Island’s government says its revenues will rise by $238.6 million this fiscal year partly because it is collecting more in taxes than originally estimated.
But despite the jump in tax dollars, the province is projecting that its deficit will grow because of spending related to inflation and to the damage caused by post-tropical storm Fiona.
The government says the deficit will rise by $1.9 million compared to what was projected in the February budget, to $94.8 million in the 2022-23 fiscal year.
Spending will rise by $240 million more than budgeted – to $2.8 billion – including more than $170 million in new spending that will fund programs to help Islanders with inflation and to recover from the late-September storm.
The government says a rise in the Island’s population and a rebound in tourism are expected to fuel economic growth this coming year.
The province’s net debt is estimated to be about $2.5 billion at the end of the fiscal year, an improvement of about $116 million from the February budget.
This report by The Canadian Press was first published Dec. 22, 2022.
