Government MLAs gave Finance Minister Allen Roach a standing ovation as he tabled his budget Friday morning, with a projected surplus of $600,000 for the coming year.
Growth in revenues, thanks mainly to a $30 million increase in federal infrastructure transfers, coupled with controlled spending over the last three years helped bring P.E.I.’s books finally back to black, Roach said.
“I’m proud the government was able to achieve that,” he told reporters Friday.
“We have been consistent for the last three budgets. Our plan was to get to this point, to work towards this point, so for me, I’m not surprised we’re at this point because I think government remained extremely focused on our mandate letters and what was expected of us.”
The $1.8 billion spending forecast for 2017-18 includes a $20 million increase in health care spending. This includes $1.2 million in new spending for mental health and addictions, thanks to the new federal health accord.
A new universal influenza immunization program will also be implemented, adding adult Prince Edward Islanders to the current program that only covers children.
Education will see a 2.4 per cent increase, which amounts to $5.7 million in new money. This will mainly go to salary increases for teachers, but will also see some new positions created to provide mental health supports in Island schools.
For post-secondary students, government is increasing the weekly maximum student loan and is increasing supports to students for community engagement and research.
More money is being spent on infrastructure thanks mainly to an infusion of federal money for clean water wastewater projects.
More is also being spent on employee benefits, notably in its government pension contribution.
But while the budget address says the Family and Human Services budget has been increased by $6.6 million, it turns out government will spend the same amount as it actually spent in the previous fiscal year. Last year, this department overspent by over $6 million due to increased demand for social assistance, disability support and supports for children. Government has simply built this increased demand into its budget for the coming year.
RELATED: P.E.I. budget highlights
New this year is an increase to the basic personal exemption for the 2017 taxation year of two per cent. This will raise the exemption by $160.
Meanwhile revenues are expected to grow by close to $80 million, the bulk of which will come from personal income taxes, HST revenues and federal transfers.
Opposition finance critic Darlene Compton says government is balancing the budget on the backs of Islanders through taxation.
“Where are those taxes going to come from? We know they’re going to come from the pockets of Islanders,” Compton said.
She also cast shade on the province’s revenue projections, pointing to a $17 million shortfall in projected revenues last year.
But Premier Wade MacLauchlan says this is a “good news” budget and stands by his numbers.
“We’re very confident that these are very solid projections… secure and strong projections and what we’ve really seen is that our economy has grown, which is why we’ve been able to do more for Islanders.”
Green Leader Peter Bevan-Baker said government shouldn’t be so quick to cheer for achieving a razor-thin surplus of $600,000.
“It’s generous to call that a rounding error, it’s a thin sliver of a shave of a spec. It’s nothing,” Bevan-Baker.
He also pointed to government’s “rosy” revenue projections for taxes and the increases in federal transfers.
“Really we could say that Ottawa balanced this budget.”
A notable absence from the budget was any plan for a carbon tax, despite a looming federal deadline to have a carbon pricing plan in place by Jan. 1st.
Roach says he wants to wait to see what other provinces do to ensure Islanders get a fair deal when it comes to carbon pricing.
The province’s net debt will rise to $2.19 billion this year.
