Government releases Public Accounts for 2020-2021 fiscal year

Today, the Province released all three volumes of Public Accounts which include the audited financial results for government from the 2020-2021 fiscal year, and shows a deficit of $5.6M.

Public Accounts is an annual financial summary and accountability report of the Government of Prince Edward Island, audited by the Auditor General.

"These numbers today continue to prove that our province’s public health response was effective, and that Islanders have shown incredible leadership in supporting our local businesses and communities to keep our economy rolling. While we must stay mindful of COVID-19 and continue to support those most impacted by the pandemic, these encouraging results will allow us to continue moving forward and building a resilient and inclusive Island economy." 

- Finance Minister Darlene Compton

This reduced deficit results from higher than anticipated revenues due to stronger than expected revenue from provincial taxes and Federal Government transfers. The Province’s original projected deficit was forcasted at $120M, and has been partially offset by an additional $88M in revenues , as well as a decrease in expenses due to a variety of reasons, including increased accessibility to federal programming for COVID-19. Personal and corporate income tax were better than anticipated at the time of the third quarter forecast, impacted by the high participation rates in Federal programming supports for Canadians throughout the COVID-19 pandemic.

The Province is required to publish its Public Accounts by the 31st of October, in accordance with the Financial Administration Act. 

Media Contact
Kip Ready
Department of Finance
kjready@gov.pe.ca

Backgrounder:

In the Spring of 2020, the Provincial Government forcasted a $120M deficit, primarily due to the increased spending that would be required to ensure that our Province’s economy could sustain the impacts of the global COVID-19 pandemic.

Provincial Public Accounts for the year ended March 31, 2021, show a reduced deficit of $5.6M, mainly resulting from higher than anticipated revenues due to stronger than expected revenue from provincial taxes and Federal Government transfers, as well as decreased expenses related to the COVID-19 pandemic.

Increased Revenue Highlights:

Provincial Revenues were $88M better than forecasted at 3rd Quarter

• Personal Income Taxes collected were $39M higher forcasted 
• Corporate Income Taxes collected were almost $11M higher than forecasted
• Provincial component of sales tax revenues were $5.7M higher than forecasted
• Provincial net revenues from Government Business Enterprises were $8.6M higher than forecasted

Federal Transfers to the Province also increased compared to 3rd Quarter Forecast:

• Federal Revenues recorded for the fiscal year 2020-2021 were $8.6M higher than forecasted.

Provincial expenses compared to forecast:

• Expenditures for Transportation, Infrastructure and Energy were almost $10M lower at 3rd Quarter mainly due to delays in municipal infrastructure projects that had funding agreements, for a total of $52M for the fiscal year.
• Expenditures for Health and Wellness, and Health PEI were $4.5M lower than forecasted for a total of $10.1M lower than budgeted. Primarily because the requirements for PPE were lower than anticipated due to the lower than anticipated hospitilizations from COVID-19.