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.
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.
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.