5 items in the federal budget of interest to P.E.I.

Finance Minister Bill Morneau released the federal government'snew budget late Tuesday afternoonand it containedsome specificitems that could affect Islanders.

Overall the budget announced billions in new spending and projecteda slightly smaller deficit for the 2018-19 budget year, but rising debt levels.

1. Housing

P.E.I. is now in a housing crisisbut thebudget contains several initiatives to help first-time homeowners to get into the game.

The government is increasing the RRSP withdrawal limit for first-time home buyers to $35,000 from $25,000.

It also introduced a new program called theFirst-Time Home Buyer Incentivethat givesfirst-timers the ability to lower their borrowing costs.

The government is earmarking $1.25 billion over three years for something it's calling a "shared equity mortgage" which functions as an interest-free loan.

To qualify, an applicant must have a household income of less than $120,000 per year and be able to come up with a fiveper cent down payment the minimum requirement for an insured mortgage with the Canada Mortgage and Housing Corporation.

If a would-be buyer meets the conditions, under the program the CMHC would kick in up to 10 per cent of the value of a newly built home, or fiveper cent of the value of a resale.

The catch is that the homeowner eventually has to pay back the CMHC's stake in the property but they don't have to do that until they sell.

The government is also putting more money into creating more rental properties$10billion over nine yearswill be provided through the Rental Construction Financing Initiative, and extend the program until 202728. That money equalsabout 42,500 new units across Canada, particularly in areas of low rental supply.

$300 million will go towardstartinga new Housing Supply Challenge. The program will invite municipalities and other stakeholder groups to propose new ways to break down barriers for creating housing.

2. Mental health

Another crisis onP.E.I. is accessing mental health programs and professionals.

The budget contains two initiatives that could help, including one specifically aimed at an Island program.

The government promises$50.8 million over five yearsstarting in 2019-2020 for something calledP.E.I.'sPublic Safety Housing project.

The money is forstructured social housing, life skills trainingand better access to assisting technologies. It will primarily help people with complex health and social needs such asa mental health disorder.

The budget also announced $25 million over five years for a new pan-Canadian suicide prevention service that will provide Canadians access to bilingual24/7 crisis support using voice, text or chat.

3. Ferries

There have been calls for years for long-term stable funding for P.E.I.'s ferry system.

The government is extending the Transport Canada Ferry Service Contribution program until 2022, which it says will ensure two vessels operate between P.E.I. and Nova Scotia.

The budget also promised to procure replacements forthe MV Madeleinewhich operates between les de la Madeleine and P.E.I.and the MV Holiday Island, which runs between P.E.I. and Nova Scotia.

4. More money for municipalities

To help withinfrastructuredeficits inmunicipalities, the budget promisesa one-time doubling of the federal gas tax funding tomunicipalities that equals$2.2 billion. The funds will be spent on addressing short-term priorities in municipalities and First Nations communities.

5. Confederation Centre

The Island's biggest arts centre is promised a financialboost too.

The budget promises the Confederation Centre of the Arts will see some of the $16 million over two years earmarked for the Canada Arts Presentation Fund. The budget document says there will be targeted support for the centre.

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