Prince Edward Island announces COVID-19 has put 2019-20 budget into deficit

Prince Edward Island’s government is going to post a $3.7-million deficit in this year’s budget rather than an anticipated surplus.

Finance Minister Darlene Compton announced late Friday that the 2019-20 deficit is due to the COVID-19 pandemic driving up costs and reducing revenues.

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Compton said prior to the pandemic emerging over the past month, the province had anticipated a $2.5-million surplus.

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The minister also confirmed the province is adding $15 million to its emergency contingency fund and will allow for deferral of property taxes and fee payments until the end of this year.

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She told reporters during the briefing that the province expects it’s going to have to borrow more money than anticipated in 2020-21 fiscal year due to the pandemic, though she didn’t name a figure.

“You can basically confirm we will be adding to the province’s debt,” said Compton.