Provincial Budget: Operating Budget
The operating budget is the estimates of revenue and expenditure that detail spending plans by the Government of Prince Edward Island to operate each department for the next fiscal year.
The 2025-2026 provincial budget and related information is available in the following documents:
- Budget Address
- Estimates of Revenue and Expenditures 2025-2026
- Budget Paper on the Economy 2025
- Budget Highlights
- Pre-budget Consultations
Securing our Economy
Lowering Business Tax $9.3 Million
- To enable Island companies to be more competitive and to reinvest in their businesses by raising the small business threshold to $600,000 and lowering the corporate income tax rate by 1%.
- Supports for Oyster Industry $3.6 Million
- To begin a Genome Surveillance Project and establish a $3 million contingency fund to help support the oyster industry
- Expanding Air Access $353,000
- Working with Maritime counterparts and the Atlantic Canada Opportunities Agency to support business and tourist travel by restoring critical hub airport connections, including the Charlottetown to Halifax connection.
- Tariff and Trade Response Funding $42 Million
- Establishing a $32 million Tariff and Trade Contingency Fund to provide direct support to businesses and workers affected by tariffs, reinforce trade relationships, and help Island businesses diversify into new markets. In addition, establish a $10 million Tariff Working Capital Program to provide financial relief through flexible loans – protecting jobs and economic stability.
Securing our Workforce
Reducing Personal Income Tax $5.1 Million
- Immediately increase the basic personal amount to $14,650 for 2025. In January 2026, increase all five tax brackets by 1.8% and the basic personal amount to $15,000, accelerating tax changes a full year earlier than originally planned.
- Reskilling and Upskilling our Workforce $1.5 Million
- To give workers new opportunities to advance or change their careers and help new workers build the skills and confidence they need to succeed.
- An Increase in Minimum Wage To $17/hour
- To help workers keep up with the cost of living and ensure that growth in our economy reaches those helping to build it.
- Increasing the George Coles Bursary $663,000
- Increase the George Coles Bursary to $3,500 to help Island students with the cost of education and encourage them to continue their studies at PEI’s world class educational institutions.
- Increasing the Marion L. Reid Bursary $155,000
- Increase the bursary to $3,500 and expand program eligibility for other in-demand occupations.
- Helping Future Farmers $100,000
- To help support the next generation of farmers by providing core funding for the PEI Young Farmers Association and expanding agricultural student bursaries.
Securing our Healthcare System
Growing our Healthcare Team
Launching a Practice Readiness Assessment Program
- To launch a program to certify up to 40 internationally trained physicians each year.
- Expanding Healthcare Training Support Programs $1.1 Million
- To create a 29-week Accelerated Medical Administrative Support Program and continue to provide Island students studying to become paramedics, resident care workers, or licensed practical nurses free tuition with a commitment to work after graduation.
- Expanding the Student Nursing Employment Program $500,000
- To hire students to work year-round alongside experienced professionals during weekends, holidays, and academic breaks. These students will graduate with strong clinical skills and step directly into fulltime roles through our Graduate Incentive Program.
- Hiring More Internationally Trained Registered Nurses $650,000
- To expand the Transition to Registered Nursing in Canada Program and continue to offer the Registered Nursing Bridging Program to hire more internationally trained RNs.
- Upskilling Opportunities for LPNs to become RNs $215,000
- To launch a pathway enabling LPNs to train and become RNs while staying in the workforce, helping meet the critical need for more RNs. This equals a total investment of $818,000.
- Funding the UPEI Faculty of Medicine $16.8 Million
- To support the opening of the UPEI Faculty of Medicine and welcome the first cohort of medical students.
- Expanding Access to Primary Care
- Opening new and expanding Patient Medical Homes which will affiliate 10,000 Islanders by the end of this year. Also, expanding teams and hours in Primary Care Access Clinics to support unaffiliated Islanders who need to be seen inperson.
- Expanding Medical Transportation Assistance $100,000
- A new program to help Islanders travel to receive life-sustaining care, ensuring Islanders who live in rural areas can access the services they depend on.
- Long-Term Care Investments $21 Million
- Increasing per diem rates for private long-term care homes, and funding to ready 103 new longterm care beds, with plans to add an additional 175 new long-term beds in the future.
- Expanded Virtual Care $4.8 Million
- To enable all Islanders to access care through phone, video, or text - making it easier to get the help they need, in a way that works for them.
- Increasing Supports for Seniors to Stay At Home $4 Million
- To make permanent the Self-Managed Care program and expand the At Home Caregiver Benefit program, for a total investment of over $10 million in programs designed to help seniors stay in their homes longer.
Securing our Communities and Infrastructure
Keeping our Transit Affordable $160,000
- To maintain free transit for students and keep subsidized daily or monthly passes available to all Islanders.
- Creating a Joint Enforcement Team to Keep our Communities Safe $810,000
- To launch a new Joint Enforcement Team to push back against emerging mid-level drug trafficking and organized criminal networks.
- Increase the Home Heating Assistance Program $3 Million
- To assist Islanders in need with their home heating costs, including oil, electricity and wood/pellets, bringing the total investment in this program to $7.7 million.
- Increasing Funding to Municipalities $5.5 Million
- Funding provided over two years through a new interim agreement, giving municipalities the support they need now to keep serving Islanders.
- Creating a Municipal Infrastructure Bank Program
- To offer low-interest loans to help communities build or refurbish infrastructure such as water and sewer systems, fire halls, and community centres.
- Supporting the Community Sector $3.2 Million
- Providing stable, core-funding for non-profit community groups including increasing funding to our food banks.
Securing our Future
Investment in Early Years $10.5 Million
- To create or transition approximately 190 affordable spaces through through converting existing spaces, creating new spaces, and designating new family home centres. This also includes the continuation of the early years centre expansion loan and grant program, and increasing wages for early years centres’ staff
- Supporting Before and After School Care $470,000
- To help centres stabilize programming and keep spaces open, while planning for expanded offerings across the province.
- Expanding School Food Lunch Program $2.5 Million
- This additional funding, with help from our federal partners, results in a total of over $7.5 million in this fiscal year to continue providing healthy and affordable school lunch options.
- Investing in our Education System $9.2 Million
- New funding for staffing, giving teachers more prep time, increasing the number of front-line school staff, and continuing the Positive Behaviour Intervention Supports pilot with expansion to the CSLF.
- Supporting Children in Care $128,000
- Provide a $200 Back to School and $200 Change in Season benefit for children in group homes, foster care, and those supported through the Grandparent and Alternate Care Program so they have what they need to play and learn.
Where can I find older budget documents?
Search Budget Archives for documents from 1998 to present.
Contact:
Sara Watson
Telephone: (902) 368-4201
Toll-free: 1-800-236-5196
Email: sdwatson@gov.pe.ca (link sends e-mail)
Published date:
April 10, 2025