Prince Edward Island’s capital budget for 2026-27 is centered on addressing the essential needs of Islanders, particularly focusing on enhancing healthcare infrastructure and education, according to Finance Minister Jill Burridge.
During the fall sitting at the P.E.I. Legislature, Burridge presented the capital budget, projecting a total expenditure of around $486.5 million for the year, with an estimated $1.6 billion to be spent over the next five years. This budget increment is only marginally higher than the previous year’s all-time high spending.
The rationale behind the budget allocation lies in accommodating the province’s expanding population and the resultant strain on public services. Burridge emphasized that the spending plan is targeted, pragmatic, and aligned with the critical requirements of Islanders.
Despite concerns raised by the province’s auditor general about P.E.I.’s escalating debt surpassing $3 billion, Burridge indicated that the projected net debt-to-GDP ratio for the upcoming fiscal year is 38%, higher than in recent periods. However, she asserted that the province’s robust financial performance and growing economy enable it to proceed comfortably with these investments.
The healthcare sector will witness significant investments, including over $132 million earmarked for establishing a health-care campus in Kings County featuring a new hospital and community health center. Additionally, funds totaling $11.9 million will be allocated for acquiring and installing CT scanners at designated hospitals lacking such equipment.
Further, there will be a substantial allocation of $131 million to conclude the ongoing Mental Health Campus project by 2027-28. Miscellaneous healthcare investments encompass new infrastructure projects, upgrades, and expansions across various healthcare facilities, with a total investment of $538 million over the next five years.
In the education sector, the government plans to inject over $437 million into renewing and expanding the school system over five years. Notable initiatives include design work funding for a replacement for Parkside Elementary School in Summerside and the construction of new elementary schools in strategic locations to cater to growing capacity needs and enhance learning environments.
French-language education will receive a significant share of $92 million, involving the replacement and expansion of key institutions in western P.E.I. and Charlottetown. Other educational endeavors encompass the development of new schools, renovations, and capital repairs to ensure schools remain up-to-date and functional.
Furthermore, the capital budget introduces new initiatives such as allocating $600,000 for early planning of a subsea power cable project and setting aside $700,000 to establish a new Access P.E.I. site in Stratford by 2030-31. Housing-related investments include funds for public housing upgrades, construction of affordable units, and a focus on sustainability following previous substantial budget increases in the housing sector.
Burridge acknowledged the success of prior housing investments, with record housing starts in 2024 and ongoing positive trends. She expressed confidence in the current housing situation, allowing for a more gradual funding approach in the present budget cycle.