PEI

Projected P.E.I. deficit almost doubles

The P.E.I. government says its operating deficit is going to be a lot higher than it thought.

Deficit for current fiscal year estimated to be $17.9M

A four-story brick building, the Coles Building in Charlottetown in winter.
An update on the 2017-18 projected surplus will have to wait until the new budget is tabled, says a spokesperson for the Finance Department. (Krystalle Ramlakhan/CBC)

The P.E.I. government says its operating deficit is going to be a lot higher than it thought.

Last spring the government estimated a $9.6 million deficit for 2016-17. In a news release Wednesday it announced that deficit would be closer to $17.9 million, 86 per cent higher.

The government blames a revised HST estimate for the increased deficit. In January the federal government called back $30 million in HST revenues from the province, following a new estimate in what had actually been collected.

The province says it was able to find some savings to offset that revenue hit somewhat.

The news release does not say what the revised deficit means for a plan to have a surplus in 2017-18. A spokesperson for the finance department said an update on the projected $9.2 million surplus will have to wait until the new budget is tabled.