April 12, 2018
Budget announces $107 million in new spending, surpluses for next three years.
On Friday, April 6th, 2018, the Honourable Heath MacDonald, Minister of Finance for Prince Edward Island delivered a balanced budget for 2018-2019 with a projected surplus of $1.4 million.
Of Interest to Credit Unions
- New Rural Growth Initiative will provide funding of $2.6 million to communities and organizations.
- An increase of $32.48 million (4.8%) to sustain and build on the Island’s provincial health system.
- A new Island Advantage Bursary will see all Island students attending college or university on PEI receive up to an additional $3,600 for a four-year program towards the cost of their tuition.
- The Debt Reduction Grant will increase to $3,500 a year, meaning students – no matter where they study if they choose to return to PEI – can see up to $14,000 of their provincial student loan forgiven. Approximately 1,300 students are eligible.
- Free tuition for lower-income students attending post-secondary school.
- Commitment to provide access to high speed internet at or above 50 mbps by 2020.
- Increased support to help newcomers settle.
- Small business tax rate is reduced by 0.5% to 4%. The budget commits to further tax decreases in future budgets. CCUA will monitor this commitment going forward.
- Introduces a Small Business Investment Grant which will give companies a 15% rebate on investments of up to $25,000 (maximum rebate grant of $3,750).
- The basic personal amount will increase by $1,000 over two years (from $8,160), removing an additional 2,200 Islanders from provincial tax roles.
- Provincial sales tax will be eliminated on residential electricity use. The provincial portion of HST will also be rebated on firewood, pellets and propane through a point of sale credit or rebate.
- Federal transfers up $60 million, provincial revenues by $43.3 million.
- Number of employed persons increased by 3.1% - unemployment decreased to 9.8%.
- Total labour income increased by 4.4%, retail sales increased by 7.4%.
- Home sales totaled 2,140, housing starts 911 (an increase of 63.8%).
- CCUA was unable to find any forecasts for 2018-2019 GDP growth, population growth, housing starts, or unemployment.
- Total revenues are forecast to be $1,985,400,000.
- Total expenses are forecast to be $1,983,900,000
If you have any questions, please don't hesitate to contact Jennifer English at firstname.lastname@example.org
or at 902 219 1711.