The Economics and Statistics Division maintains archives of previous publications for accountability purposes, but makes no updates to keep these documents current with the latest data revisions from Statistics Canada. As a result, information in older documents may not be accurate. Please exercise caution when referring to older documents. For the latest information and historical data, please contact the individual listed to the right.
<--- Return to Archive
For additional information relating to this article, please contact:
February 25, 2022PRINCE EDWARD ISLAND BUDGET 2022-23 The government of Prince Edward Island has tabled its 2022-23 Operating Budget and supporting documents. Prince Edward Island anticipates a deficit of $26.5 million for 2021-22, followed by deficits of $92.9 million in 2022-23, $51.9 million in 2023-24 and $32.1 million for 2024-25.
Prince Edward Island's revenues grew by 8.8% from 2020-21 to 2021-22 while expenditures increased by 9.7%. In 2022-23, the Prince Edward Island Budget estimates a slight contraction in revenues (-0.2%) while expenditures grow by 2.4%. In the next two fiscal years, revenue growth is projected to average 4.0% per year while expenditures rise by 2.8%.
Compared with the fiscal plan released in the 2021-22 Budget, Prince Edward Island now expects higher revenues as well as higher expenditures.
Prince Edward Island's deficit in 2021-22 was considerably smaller than estimated in last year's Budget. The deficit projected for 2022-23 is larger than expected in the previous fiscal plan and fiscal recovery is expected to be delayed by about a year.
Prince Edward Island's deficit for 2022-23 amounts to about 1.0% of GDP. The Prince Edward Island adopted a Conference Board of Canada projection that the value of nominal GDP will rise by 14.6% in 2022, shrinking the government's footprint as a share of the economy to 29.8% in 2022-23. This is expected to be stable in the next two fiscal years.
Prince Edward Island's net debt to GDP ratio is estimated to be 29.8% at the end of 2022-23, followed by a rise to 30.5% in each of 2023-24 and 2024-25.
On a per capita basis, the Prince Edward Island Budget deficit amounts to $567 per capita, owing to expenditures of $16,257 per capita outweighing revenues of $15,690 per capita.
Prince Edward Island was able to avoid extended and severe lockdowns in 2020 due to the measures implemented at the onset of the pandemic. As the province did not experience as big of an economic contraction as in other provinces, the rebound in economic activity will not be as pronounced. The average of private sector forecasters project PEI’s real GDP to grow 2.9% in 2022.
All pandemic-related health measures are expected to end by early April which will tourism activity. Cruise ships are set to return to the port of Charlottetown but a full recovery is not expected until 2023. Population will continue to grow as the backlog immigration applications get processed. While labour force is expected to increase in 2022, a lack of skilled labour is expected to create pressure for additional workers in certain sectors. Investment in building construction will be supported by private and public sector projects such as the final preparations for the 2023 Canada Winter Games. Housing prices are expected increase until supply and demand conditions are more balanced.
Key Measures and Initiatives
- $1 million to increase number of rental vouchers, rental supplements for private developers and other rental supports for seniors and families
- A new Diversity and Inclusion Growth program
- Free school supplies for grades K-9
- Launch a Seniors Food Security pilot program, starting in Kings County, to provide ongoing reheatable meals for aging Islanders
- $100 rebate on the sale of any bicycle purchased in Prince Edward Island
Prince Edward Island Budget 2022-23
<--- Return to Archive
