Prince Edward Island Budget

April 6, 2011 saw another province table a "hold the lineî budget. Prince Edward Island announced no income tax changes this year as it works to eliminate its deficit by 2013-14. Increased tax on tobacco and liquor will add to provincial coffers, while centralization of government services and other cost-cutting measures are in place to reduce expenditures. Per cigarette, the tax rises to $25.4 cents from 22.45 cents. The tax on gasoline is unchanged. The estimated deficit for 2011-2012 is $42.99 million, down from $53.7 million in the previous fiscal year.

Modest increases to pre-school and kindergarten education and a 3% increase to post-secondary institution grants were announced. Funding for physician and ambulance services and primary health care initiatives will help to address healthcare issues, while senior care and housing projects focus on an aging population. Municipalities, public transit and community organizations will benefit from moderately enhanced support in this budget.