Finance Minister Darlene Compton
2022 PEI Budget
Finance Minister Darlene Compton has presented the provincial budget for 2022-23 that will see the deficit at $92.9 million.
The budget includes $137-million in new spending and a total expenditure of $2.7 billion.
The budget will set the stage for recovery following two years of the pandemic. Compton says it paves the way to start moving the economy once again.
Both provincial and federal revenues are expected grow.
One major concern is inflation with consumer prices on the Island that increased by 5.1% in 2021 and are rising again this year. Energy prices also increased by 26.6% compared to 2020. Fuel prices have risen dramatically again this year.
Manufacturing shipments increased by nearly 15% in 2021 to $2.5 billion, an all-time high.
Budget Highlights:
$15 million will be directed toward the struggling potato industry which has been affected by the potato wart crisis.
Also, $15 million will be set aside for COVID-19 supports.
The basic personal income tax will increase by $750 to $12,000.
The Tobacco Tax will be going up this year and will be revealed in the PEI Legislature.
There will also be a further tax hike on Vape products.
Starting this summer there will be a $100 rebate on every bicycle sold in PEI will encourage active transportation and active living.
The Electric Vehicle Rebate will see an increased investment of $2.1 million.
$5.6 million will be added to the Heat Pump Rebate Program.
$1 million will be put toward the Clean Tech Sector.
$1.5 million will be added for rural transit. The service will be free for anyone under 18 including T3 Transit in the greater Charlottetown area.
There will also be additional funding for KidSport to provide $600 for each child to get involved in sports.
Health Care
Health care represents the biggest expenditure in PEI. It will be $910.8 million for the year. That is up $65.3 milion.
The budget commits over $1-million to provide supports for front line staff in the health care system. That includes resources to address labour relations and human resources concerns.
$1.1 million will create a pool of Registered Nurses who will be assigned to urgent needs and address short term vacancies to avoid bed and temporary service closures. 25 new full-time RN positions will be added.
Stabilizing of the staffing compliment for rural hospitals, in particular Western Hospital will be created. $1.1 million to add more RNs, LPNs and other health staff.
A record $8.7 million will be put toward recruiting physicians who are specialists in various fields.
$1.5 million will be put into provincial home care services. A senior food program will begin that will cost $250-thousand that will deliver meals to seniors homes.
Free Shingles Vaccine will be available for Islanders who are 65 and older.
A further $1.5 million will be added to the Provincial Dental Care program.
Education
Starting this fall the government will provide over $780-thousand to provide every student from Kindergarten to Grade 9 with free school supplies.
The George Coles Bursary for Island students entering a post secondary school in PEI will increase by $400 to $26-hundred and in some cases up to $36-hundred.
The Student Community Bursary that encourages students to be a volunteer will increase $250.
A record $27.2 million is being invested in partnership with the federal government to expand spaces, designate more centres and increase wages Early Childhood Learning.
A $675-thousand grant to UPEI will create a new Faculty of Indigenous Knowledge, Education, Research and Applied Sciences.
Tourism
All signs are pointing to a much better tourism season which will be welcome after two years affected by the pandemic.
A further $750-thousand will be invested to develop tourism marketing campaigns to support operators.
$100-thousand will go toward new investments for provincial parks.
Housing
$1 million will go to rental supports to increase the number of mobile rental vouchers, an increase of rental supplements for private developers and increase in other rental supports for seniors and families.
An additional $500-thousand will be available to increase affordable housing grants to support construction of new units.
An Employment Focus Initiative will help 400 Social Assistance clients meaningful employment opportunities and new skills.