PEI Budget: Tax relief for Islanders, increased program spending and another deficit

Following a spring election, the Prince Edward Island government tabled its 2023-24 deficit budget last week. The budget featured increased spending and tax relief for Island residents. The tax relief will be realized through the raising of the thresholds for all personal income tax brackets; another increase in the basic personal income tax exemption and a continued freeze on property taxes for the coming year. For pharmacy and home improvement retailers, there were investments made in coverage for additional medications, an increase in responsibilities for pharmacists, and investments in home building/renovation programs. Finally, there were investments made in programs to make workplaces more accessible for people with disabilities as well as investments to help transition new Canadians into the Island workforce. Despite plans to run deficit budgets for the foreseeable future, provincial revenues continue to exceed projections and the economic outlook remains positive. There is reason for optimism among RCC members in PEI.