The Prince Edward Island government has tabled a $3.5-billion budget with a projected record deficit of nearly $184 million for the 2025-26 fiscal year.
Finance Minister Jill Burridge says the $183.9-million deficit figure includes a $32 million tariff and trade contingency fund to guard against an economic downturn resulting from tariffs imposed by U.S. President Donald Trump.
Burridge says the budget includes $294.6 million in new spending, an increase of 9.1 percent over last year.
The minister says the government is also introducing tax reforms that will save Island businesses $9.3 million—they include raising the small business tax threshold by $100,000 to $600,000 and lowering the corporate income tax rate to 15 percent from 16 percent.
The basic personal exemption for personal income taxes is being increased to $14,650 for 2025, and a further increase will bring it to $15,000 in 2026.
Burridge says the province will raise the minimum wage to $17 an hour, although she provided no other details.
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