Budget 2026: Investing in Islanders for a more affordable future
Today, Minister of Finance and Affordability Jill Burridge tabled the Government of Prince Edward Island’s 2026-27 operating budget in the Legislative Assembly.
This budget reflects the choices needed to focus on what matters most, delivering direct relief to Islanders, continuing the programs Islanders rely on, and making targeted investments in healthcare and education. It delivers over $321.7 million in affordability measures to help Islanders manage the cost of living.
“This budget delivers real relief directly into Islanders’ pockets. It reflects the choices we are making to focus on what matters most right now, helping Islanders manage the rising cost of living, strengthening our healthcare system, and continuing to invest in education, while managing our fiscal responsibilities carefully.”
-Minister Jill Burridge
The 2026-27 operating budget estimates a total expenditure of $3.8 billion, a 7.6 per cent increase over last year, and includes $1.4 billion in healthcare, an increase of 14.2 per cent. Revenues are projected to total $3.4 billion, an increase of $43.2 million or 1.3 per cent. The province is forecasting a deficit of $410 million, GDP growth of 2 per cent and a net-debt-to-GDP of 38.1 per cent.
Highlights from the 2026-27 budget include:
Affordability for Islanders
- $26 million for the new Island Essentials Benefit to increase support for low- and middle-income Islanders to help offset the cost of essential household expenses
- $4.5 million to enhance the PEI Child Benefit to help families keep up with the cost of living
- $81.6 million to maintain $10 per day childcare
- $3.2 million in personal income tax reductions through increases to the basic personal exemption
Our Communities, Land & Economy
- $54.6 million to support municipalities and communities to have the infrastructure and services Islanders rely on every day
- $7.5 million to continue the Rural Growth Initiative program
- $3 million to continue to support subsidized bus passes, $2 per ride transit, and monthly transit discounts
- $2.1 million to support community-based groups implement watershed management and planning projects
- $900,000 to support the implementation of the Interim Coastal Policy Recommendations, helping guide shoreline development and strengthen our ability to adapt to climate impacts
- $7 million to continue support to our agricultural industry in areas such as stewardship, industry growth, and product and market development
- $6 million to support the oyster industry’s response to MXS and Dermo
- $61.4 million to support trade and market development initiatives to help Island businesses grow, diversify and reach new markets
Our Healthcare & Education
- $5 million for 85 new long-term care beds
- $15 million to continue seniors at-home healthcare support programs, including Self-managed Care and At-home Caregiver Support programs
- $76 million to support access to drugs on the provincial drug formulary
- $57.8 million to advance patient medical home model, increasing access to primary care
- $30.9 million to support recruitment and retention of healthcare workers
- $705,000 to enhance fertility supports for families
- $25.8 million to support operations at the UPEI Faculty of Medicine and Health Sciences Centre
- $4 million to support the Prince County Hospital Foundation’s Learning and Innovation Centre
- $1.4 million to add human resource and policy capacity to the school system to address Jenkins report recommendations
- $4.2 million to support 400 new early centre spaces
- $410,000 to implement the Cyberviolence Prevention Strategy
- $12 million in bursaries to support Island students at post-secondary institutions
Media contact:
Hillary Proctor
Department of Finance and Affordability
hproctor@gov.pe.ca