P.E.I. government tables balanced budget, with new spending and a little swagger
CHARLOTTETOWN — Amid speculation about a snap election, Prince Edward Island’s Liberal government was in a particularly boastful mood Friday when it tabled its second consecutive balanced budget.
Finance Minister Heath MacDonald is projecting a $1.5 million surplus for the 2018-19 fiscal year, saying the province’s economy is booming.
“Little Prince Edward Island continues to surprise everyone,” MacDonald told the legislature. “Our economy is stronger than it’s ever been, and it’s growing faster than the region and the country.”
However, a closer look at the numbers shows that a $62 million increase in federal transfers was key to helping the province record a surplus while boosting operating expenditures by 4.5 per cent. Federal funds account for 39 per cent of the P.E.I. budget.