The fiscal year 2025-26 concluded with a deficit of $355.5 million for the government of Prince Edward Island (P.E.I.). This amount is nearly double the original projection from the provincial budget released in the spring of 2025. Initially, a deficit of $183.9 million was anticipated by the province. The audited financial statements were made public by the province on Friday.
A notable overspending occurred in the Department of Agriculture, surpassing the budget by $64.1 million. The excess expenditure was primarily due to crop insurance claims related to potatoes and soybeans, stemming from drought conditions during the 2025 growing season.
Additionally, there was an overspending of $127.1 million on health care services. Over the years, the province has faced criticism for consistently underestimating provincial tax revenues. However, in this instance, provincial revenues closely aligned with the figures outlined in the 2025-26 budget.
By the end of March 31, 2026, P.E.I.’s net debt totaled $3.7 billion, translating to approximately $20,224 for each resident of the island.