Health, higher fuel costs drive $440.4M deficit forecast in P.E.I.'s fiscal and economic update

Source: Prince Edward Island - Regional News
Date: 2026-09-28 22:25:02.0
Tags: [Prince Edward Island, Finance, Healthcare, Economy, Affordability]

The Government of Prince Edward Island, led by Finance and Affordability Minister Jill Burridge, released its first-quarter fiscal and economic update for 2026-27, projecting a deficit of $440.4 million. This represents a $30.5 million increase from the operating budget tabled in April, driven by an additional $53.4 million in spending primarily directed toward healthcare, social program funding, and higher diesel and heating fuel costs. Despite the increased deficit and spending pressures, the province reported improving economic indicators, including a 7.1 per cent year-to-date growth in labour income and retail sales, alongside a 24.6 per cent increase in housing starts.