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Prince Edward Island has increased its deficit projection by almost $50 million, according to the province’s fall fiscal and economic update, released Friday.
The provincial operating budget tabled in April included a $410-million shortfall. Now, the province said it’s expecting its finances to go $459.3 million into the red.
Increased operating expenses — which came in more than $100 million over budget — can be primarily attributed to health care, social program funding and rising fuel costs, according to the update.
“Our focus remains on maintaining essential programs and services, like health care and public education, while balancing responsible spending, careful debt management, and strategic investments that will support sustainable, long-term economic growth,” Finance Minister Jill Burridge is quoted as saying in a news release.
According to the fiscal update, P.E.I.’s net debt is forecast to decrease by $101.8 million by the end of the 2026-27 fiscal year compared to estimates from the spring budget.
The province said in a news release that while spending has increased, P.E.I.’s economy is seeing improving revenues, including:
Average monthly employment up 3.1 per cent compared to the same period last year. Unemployment rate fell to 7.4 per cent, representing a 0.7 per cent decrease from the previous year. International goods exports up 7.2 per cent.Farm cash receipts up 3.5 per cent.