The leaders of Prince Edward Island’s opposition parties say the province’s growing deficit is unsustainable, and they’re questioning the Progressive Conservative government’s ability to lead Islanders.

The province’s latest operating budget, tabled Tuesday, projects another record deficit of $410 million for the 2026-27 fiscal year. That’s more than double the $183.9 million that was originally projected for 2025-26 last spring.

The 2025-26 deficit is now forecast to hit $449.6 million.

P.E.I. Liberal Leader Robert Mitchell told CBC News that the budget doesn’t demonstrate an effort to manage the government’s “out-of-control” spending. He noted Islanders had to wait an additional eight weeks to see the budget after Premier Rob Lantz prorogued the legislative sitting, which was initially supposed to begin in February.

“Obviously, it does indeed show poor leadership. We need to get this under control,” Mitchell said.

“This government doesn’t have a money problem, they have a spending problem, and that spending continues and continues and continues.”

P.E.I. Green Party Leader Matt MacFarlane called the budget “concerning,” and said the PCs’ “reckless spending continues.”

“We’re seven years in with this government and the only way they seem to be able to try and find a path forward is to put us hundreds of millions of dollars now in deficit every year,” he said. 

“That’s the extent of the government’s ability to lead in this province, and it’s not sustainable. … It’s not a path forward.”

Rebate program a ‘bait and switch,’ says Mitchell

The budget sees reductions in the Department of Transportation, Infrastructure and Energy, with spending dropping from $317.7 million to $279.1 million.

Much of that stems from the elimination of the P.E.I. Energy Rebate Program, which provided Islanders with a 10 per cent subsidy on the first 2,000 kilowatt-hours of monthly residential electricity use. The rebate averaged about $175 per year per customer and is ending in June, meaning electricity bills could rise. 

Burridge said those funds are being redirected to a new program — the P.E.I. Essentials Benefit — which will provide individuals $310 annually and couples $365, depending on their income level.

Mitchell called the change a “bait and switch.”

“They’ve taken it basically from Peter to pay Paul — took it out of one Islander’s pocket, put it in the other pocket and call it a new Islanders benefit package,” he said.

“At the end of the day, what’s the benefit for Islanders? Not much.”

MacFarlane said he’s concerned that Islanders will seeing higher power bills once the subsidy is removed.

“Maritime Electric is quite good at increasing rates over and over and over again. Now we see government … actively choosing to take a step that’s also going to result in electricity rates getting higher and it’s not going to be offset,” he said.

“This is not a plan forward for government that’s going to result in material changes or improvements for Islanders.”

MacFarlane said he expected such cuts, noting the department was renamed to remove the words “climate change” from the portfolio. 

“The government has signalled a real direction change here, and climate change and sustainability and mitigation adaptation measures have fallen off the wayside,” he said.

“It’s fantasy budgeting. It’s not realistic.”

Mitchell also pointed to health care, noting department spending increased from $750 million in the 2019-20 budget — when the Liberals formed government and Mitchell was in cabinet — to $1.4 billion today.

“If you could say our health-care system was two times better, I could appreciate that,” he said. “But I don’t think that’s the sentiment of any Islander today.”