P.E.I.'s deficit to soar by $13M says Finance Minister Allen Roach

P.E.I.'sdeficit for 2015/16 is now projected to be$32.9 million, which is $13 million higher than the budgeted deficit of $19.9 million, said the Island's Finance Minister Allen Roach in his fall economic update.

Roach said the increase is mainly due to additional investments in education, more money required for employee benefits, and increased spending for hospitals and in-province medical services.

Still hope to balance budget

Roach cautioned that the report is only a "snapshot in time."

"We are working together with our departments to ensure that we meet our budgetary objectives and get back on track to balance our budget in 2016-17," Roach said in the legislatureTuesday.

However Roach said the province is not consideringcutbacks to make up the shortfall.

"We're not talking about cuts, that's nowhere in the cards here," he said outside the legislature, adding he hoped the province would be able to balance the books by the end of the 2015-16 fiscal year.

"We did the same thing last year, we go back and we go to our deputies and we see where areas are that we can find savings."

Opposition notbuying it

"We continue to see the cuts made to the front-line workers: nurses, teachers, disinfection stations," said Opposition Finance Critic Darlene Compton. "If that's what it takes to balance the books, we're very concerned."

Roach balanced the news of the deficit by highlighting several positive points:

• Housing starts are up 13.9 per cent for 2015.
• P.E.I.'s population remains the fastest-growing in the Atlantic region.
• The value of international exports was up 18.7 per cent through September, also the fastest growth in the country.