The P.E.I. government’s fall fiscal update is forecasting the deficit for 2026-27 will be $49.4 million higher than expected. Photo by Vivian Ulinwa /The GuardianArticle contentThe P.E.I. government is forecasting its deficit will be $49.4 million higher than it expected when it released its budget in the spring.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentIn its fall fiscal update released late in the afternoon on Oct. 30, the Finance Department said the updated forecast for the 2026-27 fiscal year shows a projected deficit of $459.3 million.Article contentArticle contentThe change is due to increased spending of $101.3 million compared to an estimated $52 million in extra revenues.Article contentArticle contentThe fiscal update showed Health P.E.I. was responsible for the biggest share of the extra spending with $74.3 million in increased expenditures forecast.Article contentSome of the government’s increased spending was also partially offset by lower-than-expected expenditures in some departments.Article contentThe province is projecting the net debt will increase by $708.3 million to reach $4.4 billion, which is less than originally forecast in the budget.Article contentThat change is partly because the deficit for 2025-26 ended up being lower than originally predicted, and the province spent less on capital projects than was set out in this year’s capital budget.Article contentThe fiscal update also included economic indicators, including that P.E.I.’s population increased by 0.8 per cent to reach 182,989 residents in July.Article contentAverage monthly employment increased by 3.1 per cent from January to September compared to the same period last year.Article contentWith more people working, the unemployment rate dropped to 7.4 per cent, which was a 0.7 per cent decrease from the previous year.Article content
P.E.I. deficit to increase by $49.4 million in latest forecast
