Budget Address 2026

Delivered by the Honourable Jill Burridge Minister of Finance and Affordability and Chair of Treasury Board at the Third Session of the Sixty-seventh General Assembly of the Prince Edward Island Legislature, April 14th, 2026.

Good afternoon, 

Mister Speaker, Members of the Legislative Assembly, guests, it is my honour to present the 2026-2027 operating budget for Prince Edward Island.

Across our province, Islanders are making careful choices.

Families are managing the cost of groceries, housing, and everyday essentials. They are looking at what comes in, what goes out, and making decisions about what they can afford.

Businesses are doing the same, managing higher input costs, navigating uncertainty, and working to stay competitive while employing Islanders and growing our economy.

Across our communities, we are seeing the impact of growth. More people. More demand. And increasing pressure on the services that Islanders rely on every day.

And government must do the same, making careful choices to support Islanders while ensuring our finances remain sustainable.

This is the reality Islanders are facing.

And it is the reality this budget responds to.

It includes $269 million in new spending, bringing total expenditures to approximately $3.8 billion. Revenues are projected to reach $3.4 billion, reflecting continued economic growth across the province. This results in a projected deficit of $410 million, reflecting the pressures facing our province and the deliberate choice to continue supporting Islanders during this time.

Mister Speaker, these pressures did not emerge overnight. And they will not be resolved overnight.

But they do require a clear plan.

They require focus.

And they require responsible decisions.

In the Speech from the Throne, we set out that direction– a focus on building our future by strengthening healthcare, improving affordability, securing our energy future, and ensuring responsible management of land.

This budget supports that work.

But it also reflects something important.

It reflects a government that is clear about the moment we are in.

A government that is acting.

And a government that understands its responsibility to support Islanders today while ensuring we are building a sustainable future.

Mister Speaker, we have made deliberate choices.

We will continue to invest in Islanders.

We will continue to strengthen the services people rely on.

And we will continue to support families, workers, and communities across this province.

But we will do so with increased focus.

That means making careful choices—investing where it matters most, while making targeted adjustments to ensure our spending is sustainable over the long term.

Because at a time like this, how we invest matters just as much as where we invest.

It means making sure programs are working as intended.

It means making adjustments where they are needed.

And it means ensuring that every dollar is delivering value for Islanders.

Mister Speaker, this is not about stepping back.

It is about having clear priorities.

It is about protecting what matters most.

And it is about making the decisions required to ensure those priorities are sustainable. Not just today, but for the years ahead.

Because the choices we make now will shape what comes next.

And this budget is about continuing to build our future, with steady, responsible decisions that strengthen our province and support Islanders every step of the way.

Mister Speaker, affordability continues to be one of the most pressing challenges facing Islanders.

Families are feeling it at the grocery store, at the gas pump, and in their monthly bills.

And that is why supporting Islanders with the cost of living remains a central focus of this government.

Mister Speaker, in total, this budget includes over $321.7 million in affordability measures—helping Islanders manage costs and keep more money in their pockets.

We are reducing everyday costs for Island families through practical supports that people see and feel.

This includes $94.7 million to support childcare, school food programs, and free school supplies to help lower the cost of raising children and supporting families across the province.

Mister Speaker, last year’s daily ridership was almost 600 one-way trips using our rural transit program. Our government will continue helping Islanders manage the growing cost of transportation with $1.2 million in transit supports including subsidized bus passes, $2 per ride transit, and monthly transit discounts. 

And our government is supporting Islanders with the cost of energy by providing $7.2 million through the PEI Home Heating Program.

Mister Speaker, access to housing remains one of the biggest pressures facing Islanders.

That is why this budget includes $34.6 million in housing supports including rent supplements, mobile rental vouchers, transitional housing and shelter supports, the Rent-to-Own Loan Program, closing cost supports, home renovation programs, and the Affordable Housing Development Program.

It also includes $21.2 million to support the ongoing operation of the 2,250 government-owned social housing units across Prince Edward Island.

These supports help Islanders find housing, stay in their homes, and manage rising costs.

Mister Speaker, our government is introducing a new Prince Edward Island Essentials Benefit to provide direct financial relief to Islanders.

Supported by $26 million in funding, this benefit will provide increased support to low- and middle-income Islanders to help offset the cost of essential household expenses.

It is designed to be simple, accessible, and focused on those who need it most.

Mister Speaker, we are also continuing to provide targeted financial support to Islanders.

Earlier this year, we increased the basic personal exemption from $14,650 to $15,000— reducing taxes for Islanders and leaving more of their income in their pockets. This change is expected to keep approximately $3.2 million in income in Islanders pockets annually.

Families will also receive additional support through enhancements to the PEI Child Benefit, which will provide a total of $4.5 million to help keep up with the cost of living. 

Our government is continuing to support Islanders through the Social Assistance program, with $69.3 million, helping those who need it most manage rising costs and meet everyday needs.

We are also providing $6.9 million in supports for seniors, including the Seniors Independence Initiative, the Seniors Hearing Aid Rebate Program, Seniors Safe @ Home Program, and the Seniors Home Renovation Program which are helping seniors remain independent and supported in their communities.

Mister Speaker, we are also supporting Islanders living with disabilities to reach their full potential.

This budget includes an investment of $2.1 million to begin implementing year one recommendations from the AccessAbility Supports and Residential Services reviews, including increased respite supports for caregivers and improvements to programs that help people live with greater independence.

And we are continuing to support community organizations, with $350 thousand in base funding for food banks, ensuring Islanders have access to support when they need it most.

Mister Speaker, these are real supports.

And they are making a difference in the lives of Islanders.

They are also the result of careful choices—continuing to support Islanders while ensuring these measures are sustainable over the long term.

Mister Speaker, delivering on these priorities also requires responsible decisions about how we fund them.

Beginning this year, a new personal income tax bracket will apply to income over $200,000.

Non-resident property owners will see an increase of 20 cents per $100 of assessed value, and the insurance premium tax will increase by 0.25% percent.

Mister Speaker, the investments we are making—and the decisions required to support them—reflect the choices in this budget.

Choices to help Islanders manage costs today, while ensuring we are managing our finances responsibly for the future. 

Our government is committed to identifying opportunities to reduce costs, enhance controls, and improve service delivery through advancing the responsible use of artificial intelligence in public services. This year will see the activation of the Province’s internal audit program, as well as continuing the work to modernize critical information systems that will give us better data, reporting, and ability to deliver services to Islanders.

Through the Cabinet Committee on Fiscal Responsibility and Red Tape Reduction, work will begin on a comprehensive public expenditure review as well as provide a focused effort to reduce red tape across departments.

The goal is to make it easier for Islanders and industries to access services, comply with rules, and grow businesses.

Mister Speaker, building our future depends on a strong and growing economy.

Even in a time of global uncertainty, Prince Edward Island’s economy continues to show resilience, with international exports reaching a new record high of $2.6 billion, growing by over 1.8 percent over the last year. 

That strength is also reflected in our province’s relationship with the United States, historically our strongest trading partner. Even with the uncertainty around US trade, exports grew by 8 percent in 2025, making Prince Edward Island the only province to see growth in that market. 

We are continuing to invest in Island businesses, helping them grow, diversify, and reach new markets, supported by $61.4 million in business development, innovation, and export programs.

That includes support for key sectors such as bioscience, aerospace, and cleantech. These are industries that are creating good jobs and driving growth across our province.

Since the beginning of 2019, our province has seen private sector employment grow by more than 27 percent—the strongest growth in the country.

And it is our Island businesses that are driving that momentum, creating opportunity, expanding, and helping power our economy forward. 

We are supporting our exporters with $2.3 million in trade and market development initiatives, helping Island businesses reach new market and respond to global pressures.

In collaboration with the federal government through the Sustainable Canadian Agriculture Partnership, we are continuing to support our agricultural industry with a total investment of $7 million. This funding supports programs such as: Agriculture Stewardship Program, Strategic Industry Growth Initiative, PEI Livestock Strategy Program, as well as product and market development.

Mister Speaker, we are also continuing to invest $5.3 million in arts and culture, recognizing the important role the sector plays in both our economy and our communities.

This includes support for the Acadian and Francophone community, with $20 thousand through the Acadian Heritage Month Fund, helping to preserve and promote language, culture, and heritage.

We are preparing for the opportunities ahead, including the creation of an Advisory Panel on National Defence Opportunities, helping position Prince Edward Island to benefit from increased investment in growing and emerging sectors.

We are also continuing work to reduce barriers to trade and make it easier for Island businesses to operate across Canada.

That includes reaching agreements with other provinces and territories to advance mutual recognition and reducing duplication of requirements that have made it harder for businesses to sell their goods across the country.

This work is opening new markets for Island producers—including the ability to sell directly to consumers in other provinces—while giving Islanders greater access to Canadian products.

It is about making it easier to do business and ensuring Island companies can compete and grow. Mister Speaker, strong communities and a resilient economy depend on the industries and organizations Islanders interact with every day.

Our seafood industry is built on the strength of its fishers, processors, and growers, and the work they do every day is felt by families and our communities. 

The oyster industry is a vital part of our seafood story--and a key part of our economy and way of life.

In recent years, MSX and Dermo have emerged in our waters and have had a significant impact on the industry. 

$6 million is being invested to support the industry’s response, including mitigation and adaptation efforts, and to help identify a sustainable path forward that supports long term viability. 

This budget also sets aside $400 thousand, contingent on a renewed Atlantic Fisheries Fund, to support innovation, sustainability, and the long-term strength of the industry. We are prepared to do our part, and renewed federal participation will be essential to move this work forward.

Mister Speaker, through these investments along with our investments in market development, we continue our efforts to expand seafood trade and strengthen resilience in the face of global pressures.

Across our communities, this budget includes $118.1 million to support municipalities and communities, and the services Islanders rely on every day, from local infrastructure and transit to community safety and service delivery.

This includes $49.4 million in transfers and grants to municipalities, supporting services such as land use planning, streets, and policing, an increase of $2.1 million from last year.

As well as investments in local infrastructure and transit, as well as continued support for community safety initiatives, including the Joint Enforcement Team.

We are also taking steps to strengthen programs within the justice system to support safe communities, including the development of a bail supervision program.

An investment of $7.5 million through the Rural Growth Initiative will support community-led projects that strengthen rural communities and help them grow and adapt. 

Mister Speaker, in this budget, we are making careful choices, focusing support where it is needed most and where it will have the greatest impact. 

In recent years, we have made record investments to increase the housing supply and support Islanders to stay in their homes.

This year, we are increasing operational funding to support over 200 additional government-owned social housing units, ensuring Islanders on the social housing registry are prioritized. We are also funding 120 additional rent supplements, investing over $2 million, to unlock additional supply in mixed-income developments, helping more Islanders find stable and affordable housing.

 We are also taking steps to help Islanders remain in their homes and reduce pressure across the system.

This budget will continue support for the home renovation programs, supporting essential repairs and upgrades that allow Islanders to stay safely in their homes longer.

Mister Speaker, these investments reflect the choices we are making to increase supply, support Islanders, and strengthen communities.

Because housing is not just about building units.

It is about building stability for Islanders, and continuing to build our future in communities across Prince Edward Island.

Mister Speaker, land is one of our most important responsibilities.

It is central to our environment, our economy, and our identity as Islanders.

This budget reflects that, with continued work on land use planning, exploring the establishment of a provincial agricultural land trust to protect farmland, and increasing protected areas across Prince Edward Island. 

Mister Speaker, we are also continuing to take action to protect our coastlines and respond to climate pressures.

This includes $900 thousand to support the implementation of the Interim Coastal Policy Recommendations, helping guide shoreline development and strengthen our ability to adapt to climate impacts.

And we are investing $150 thousand to begin an updated Climate Change Risk Assessment, ensuring decisions are made using the best available information.

We will also continue to work with our First Nations partners on climate change and shoreline management initiatives, supported by a total funding of $222 thousand.

Mister Speaker, these are careful, targeted investments.

They reflect the choices we must make, protecting our land, supporting responsible development, and ensuring we are building our future in a way that respects what makes Prince Edward Island unique.

Mister Speaker, our government is taking practical steps to help Islanders manage rising energy costs and the demands on our energy grid, supported by $30.2 million in home heating and energy efficiency programs.

That includes support for firewood and pellet rebates, biomass equipment rebates, home insulation, and energy efficiency upgrades. These are practical supports that help Islanders heat their homes and reduce costs.

We are supporting Islanders in using energy more efficiently, helping reduce pressure on the system and ensuring electricity is available when and where it is needed.

Mister Speaker, these investments reflect the choices we are making.

To help Islanders manage costs.

To strengthen our energy security.

And to continue building a system that will continue to support our province.

Mister Speaker, healthcare remains the single largest investment we make.

This year, we are investing $1.4 billion to support Islanders and strengthen our healthcare system.

Since 2019, the healthcare budget has doubled. This year’s budget represents an additional investment of 14.2% over last year. 

This investment reflects the growing demand on our healthcare system and the choices we have made to expand care, support our workforce, and improve access.

Mister Speaker, our focus continues to be on ensuring Islanders can access the care they need, when and where they need it.

That includes $57.8 million to support primary health care including Patient Medical Homes and team-based care, helping more Islanders connect with primary care providers and reducing pressure on emergency departments.

We are also investing $9.3 million to improve access to diagnostic imaging, lab services and cataract surgeries, so Islanders can receive care sooner. 

Mister Speaker, we know that a strong healthcare system depends on the people delivering care.

This budget includes $30.9 million to support recruitment and retention across the system and strengthen our healthcare workforce. This includes $6.7 million specifically earmarked for education bursaries and incentives for new graduates to stay and work here on the Island.

That includes $875 thousand for the Practice Readiness Assessment Program, helping internationally trained physicians begin working sooner.

We are also continuing to support nursing pathways, including $436 thousand for Licensed Practical Nurses to advance to Registered Nurses, and $1.5 million to support the Transition to Registered Nursing in Canada Program. 

We are expanding access to post-secondary education in high-demand fields, including 50 first-year seats for Island students in 11 priority programs, supported by $3 million over two years.

This will give Island students better access to training in high demand health fields, including medicine, dentistry, nursing and allied health. Through our partnership with Dalhousie University, students will have priority access to key programs not currently available on the Island, helping to strengthen our healthcare workforce for the years ahead.

Tuition subsidy programs for licensed practical nurses, resident care workers, and paramedicine are being supported with over $2 million in funding, helping Islanders train for in-demand healthcare roles.

This year, we are investing $25.8 million in the UPEI Faculty of Medicine and Health Sciences Centre—continuing to build something Islanders can be proud of, training the next generation of physicians right here at home.

Mister Speaker, our government is continuing to invest in the infrastructure and supports Islanders rely on.

The At-home Caregiver Benefit and the Self-managed Care Program are key to helping Islanders remain in their homes and communities, recognizing the role of caregivers and giving families more flexibility in how care is delivered. 

This budget includes almost $15 million to support these programs—alongside efforts to better coordinate services, improve access, and ensure Islanders can receive the right support, at the right time.

This budget also includes $194.4 million to support long-term care capacity and services for Islanders who can no longer live on their own, with family or home care supports.

It also includes $4 million this year toward the Prince County Hospital Foundation project, part of a $10 million commitment to their Learning and Innovation Centre to support the delivery of the UPEI Faculty of Medicine program as well as temporary housing for medical learners.

We are also investing $705 thousand to enhance the Fertility Treatment Funding program by removing income-testing requirements, helping more Islanders access care and build families.

This budget includes $76 million to continue to support access to drugs on the provincial drug formulary, maintaining the $5 co-pay for almost 200 medications, including those  used to treat cardiovascular disease, diabetes, and mental health conditions.

Mister Speaker, these investments reflect the choices we are making.

To improve access to care.

To support the people delivering it.

And to ensure our healthcare system continues to meet the needs of Islanders, now and into the future.

Mister Speaker, education is one of the most important investments we can make in our future.

This year the total budget for education and early years will be just over half a billion dollars, an increase of almost $40 million over last year.

This investment reflects the growing demand on our education system and the choices we are making to strengthen classrooms, support educators, and prepare Island students for the future.

That is why, even as we take a more focused approach in this budget, we are continuing to strengthen our education system at every stage.

We are strengthening the early years system, making sure families have access to affordable, high-quality childcare, and that the system continues to grow to meet demand.

This includes $4.2 million to add 400 new early years spaces through continued capital expansion, helping more families access child care while supporting workforce participation.

Through our partnership with the federal government, we are also continuing to provide access to $10-a-day childcare with funding of $81.6 million, helping reduce costs for Island families, along with $1.6 million to continue to offer our free universal pre-k program.

And we are supporting the people who make this system work, with an investment of $990 thousand to improve wages for early childhood educators because we know we need to continue to support the people who deliver these programs to our young children.

Mister Speaker, we are also continuing to support Island families directly, with measures that help reduce everyday costs.

This includes $8.3 million to support our universal school food program, in partnership with the federal government, ensuring students have access to nutritious meals through a pay-what-you-can model in schools across the province.

We are also providing free school supplies for students from kindergarten to grade 9, supported by $1 million, helping reduce back-to-school costs for Island families.

Because at a time when families are making careful choices, these supports make a real difference.

Mister Speaker, we have also made historic commitments to our education infrastructure.

We are building new schools and upgrading classrooms to meet the needs of Island students.

But we are also clear about this– catching up from years of underinvestment takes time.

That is why we are continuing this work, year over year, to ensure students have the learning environments they deserve.

Mister Speaker, in our schools, we are strengthening the supports students need to succeed.

This budget provides $3.7 million to hire 70 additional educational assistants and youth service workers, increasing support in classrooms across the province.

We are also investing $626 thousand to continue investments in speech language services and additional teaching supports, so students receive help earlier and more consistently.

And we are continuing to implement the recommendations of the Jenkins report, with an investment of $1.4 million, including added human resource and policy capacity within both the Public Schools Branch and the Commission scolaire de langue française.

Mister Speaker, we are also taking steps to ensure our schools are safe, inclusive, and responsive to the realities young people are facing today.

Because every Island child deserves the opportunity to succeed.

An increased investment of $145 thousand to support inclusive education will see the creation of a dedicated Inclusive Education Manager who will lead the introduction of our Inclusive Education Plan across the province and support our educators and school staff in implementation.

We are also investing $410 thousand to advance a Cyberviolence Prevention Strategy, helping ensure safer learning environments for students both in and outside the classroom.

And, as I noted earlier, this budget includes $600 thousand to enhance the PEI Child Benefit, providing additional support to low- and modest-income families and helping reduce child poverty.

Mister Speaker, these investments will support children and families.

That work does not stop at their high school graduation.

This budget strengthens the pathway from education to employment, helping ensure Islanders have the skills needed for the jobs of today and tomorrow.

Mister Speaker, our government will support Island students directly, with a $180 thousand increase to funding allocated to the George Coles Bursary, which reflects the growing enrollment of Island students at our Island post-secondary institutions. This will increase our investment in post-secondary bursaries provided to Island students to $12 million in the upcoming year.

We are also modernizing how apprentices and employers access training, with $245 thousand to launch a new Apprenticeship Management System, while continuing work to remove barriers so tradespeople can get to work faster.

Support for rural employment is being delivered through the Rural Enhancement Employment Program, with $923 thousand, helping Island businesses create jobs, build capacity, and provide work experience that can lead to long-term employment.

Mister Speaker, in a time of global uncertainty, we are also working with the federal government to support Island workers and businesses, including $3.08 million over three years for those impacted by tariffs. This will result in additional financial resources to support workers and employers in targeted sectors impacted by trade disruptions primarily in steel, aluminum and softwood lumber sectors as a result of tariffs and global market shifts.

Mister Speaker, these investments reflect the choices we are making to support Island students, strengthen our workforce, and continue building our future.

Mister Speaker, this budget is grounded in the reality Islanders are facing today, the pressure on household budgets, the demands on our services, and the uncertainty shaping decisions for families, businesses, and communities across our province.

And in a moment like this, what matters most are the choices we make.

Choices about where we focus our efforts.

Choices about how we support Islanders.

And choices about how we build our future in a way that is responsible and sustainable. Because the decisions we take now will shape the strength of our healthcare system, the opportunities available to Island families, and the kind of province we are building for the years ahead.

That is why this budget takes a deliberate and focused approach.

It continues to support Islanders where it matters most, while recognizing that not every priority can be advanced at once. It requires discipline, clear priorities, and a willingness to focus on what will make the greatest difference over time.

Mister Speaker, Islanders expect their government to be responsible in its decisions, clear in its direction, and grounded in the realities people are living every day.

That is what this budget does.

It supports Islanders today.

And it takes the steps needed to build a stronger future for tomorrow. Because our future will not be shaped by a single decision. It will be built, step by step, through the choices we make.

Thank you. Merci. Wela’lin.q