‘This is scary’: Opposition sounds alarm over forecast that P.E.I. deficit will set a record [Video]

Opposition MLAs say they are concerned about Prince Edward Island’s newest budget, which includes the largest deficit in the province’s history.

Rob Lantz’s Progressive Conservative government tabled the 2025-26 operating budget on Thursday, projecting a $183.9-million deficit.

The previous record deficit was in 2020-2021, the first year of the COVID-19 pandemic, when the province recorded a $172.7 million deficit.

“This is scary… It is the largest deficit ever recorded in the province of Prince Edward Island, and we’re going through some very, very challenging times right now with the unpredictability what’s happened south of the border,” said Opposition leader Hal Perry.

Budget includes some good spending: Liberals

The budget was released at a time of growing global instability, including political tensions and trade conflicts, with U.S. president Donald Trump launching a trade war against Canada and many other countries around the world.

Perry said there are some good expenditures in the budget, including a $32-million Tariff and Trade Contingency Fund. The fund is designed to help …