Province projects surplus of $4.4M

The provincehas updated its forecast for the current fiscal year and is projecting a $4.4 million surplus, $2.9 million more than initially projected when the province tabled its operating budget in April.

Government is forecasting a total revenue increase of $30.3 million over budget.

Finance Minister Heath MacDonald saidthese increases comefrom corporate tax, personal income tax and sales taxes andare offset by increases to agricultural insurance payments, social assistance payments and medical services.

"P.E.I.'s economy has seen solid economic growth over the last number of years. It has expanded every year since 2008," MacDonald said.

He saidmost industries on the Island experienced growth andthat trend is continuing into this year with help from a growing population and higher employment rates.

"Manufacturing shipments is up 6.6 per cent through September," he said, adding that growth in housing sales is up 3.6 per cent.

The minister acknowledges losses in some industries, but said growth in the Island's economy should help with bouncing back.

For the previous fiscal year, 2017-18, the P.E.I. government had initially projectedan operatingsurplus of $601,000. That forecast was later revised to $1.2 million. But when the province's audited financial statements were released, they showed the surplus had grown to $75 million on account of tax revenues coming in higher than projected.

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