CFIB applauds restraint in the 2010-2011 PEI budget
For more details
PEI Budget Report Card
Report Card for the 2010-2011 Provincial Budget
PEI Pre-Budget Presentation
Presentation made to Hon. Wes Sheridan, February 2010
After years of substantial spending increases, the PEI government has followed the recommendation of CFIB members and will be keeping a tight lid on its spending in 2010-2011. When tabling the budget on April 23, 2010, Finance Minister Wes Sheridan indicated that this spending restraint will continue for the next four years and lead to a balanced budget by 2014.
In the budget, government followed through on a number of CFIB priorities:
- Only a 2.5% increase in program spending. A nice improvement over the average of 10% annual growth.
- Decrease in the small business corporate tax rate to 1% as of April 1, 2010.
- No tax increases (despite some other governments giving in to the temptation to tax and spend!)
- A medium-term plan to return to balanced budgets through spending restraint.
- A budget day lock-up for stakeholders so that groups like CFIB can see the budget documents before commenting to the media
Unfortunately, government missed the opportunity to provide tax relief to working Islanders by increasing the basic personal amount (the amount Islanders get to keep before paying income taxes). PEI’s basic amount is the lowest in the country (just $7,708) and has increased only 4% since 2002. This is in spite of a 50% increase to minimum wage over the same period.
