Third Quarter forecast indicates $13.8M surplus
The Third Quarter Forecast for 2018-19 indicates a surplus of $13.8 million, an improvement from the budgeted surplus of $1.5 million.
“The province’s economy continues to thrive and it is no surprise that PEI is projected to lead the country when it comes to economic growth in 2019,” said Finance Minister Heath MacDonald. “The benefits of a strong economy, made possible thanks to hardworking Islanders, are allowing us to accelerate investments in important areas like affordable housing, healthcare services, education and support for Island families.”
Prince Edward Island’s solid financial position has allowed government to invest in the priorities of Islanders, while at the same time posting a surplus.
Priority investments include:
- increasing the Basic Personal Amount by $1,000;
- reducing the small business corporate income tax rate from 4.5per cent to 3.5percent;
- increasing expenditures in the Department of Communities, Land and Environment by $3.4 million as a result of increase carbon relief rebates and clean energy rebates;
- adding new poverty reduction initiatives, increased benefits for social assistance clients and increased funding for community partners providing services to Islanders;
- allotting $13 million to making housing more affordable and increasing supply;
- increased healthcare expenditures by $9.3 million including new drugs and an increase in use of in-province medical services;
- making significant new investments in mental health and private nursing care beds;
- adding 76 new teachers, English as an additional language positions and educational assistants;
- adding 400 new childcare spaces; and
- increasing supports to post-secondary students by introducing the Island Advantage Bursary and increased funding for UPEI, Holland College and Collège de l'Île.
With continued economic strength and a growing population, PEI is projected to lead the country in economic growth this year.
For 2018, in comparison to 2017:
- population growth is up 1.8 per cent
- employment growth is leading all provinces, up 3.1 per cent
- total labour income has grown 4 per cent
- more Islanders than ever are employed
- manufacturing shipments are up 9.2 per cent
- there is growth in retail sales, and
- housing starts are up 19.9 per cent.
For more information visit, Third Quarter Forecast and Economic Update.
Department of Finance