Liberals puzzled, Greens pleased with government's pandemic budget
'It is not enough to throw money at issues'
The P.E.I. government tabled its 2020-21 operating budget Wednesday and there are mixed feelings about the projected spending.
The projected deficit comes in at $173 million. Revenues are up, mostly due to an increase in federal transfers, but the province is also projecting an increase in provincial revenues.
For the most part, the Official Opposition is happy with what it sees. Finance critic Michele Beaton said a number of requests made by the Green Party have made it into the budget, including extended funding for non-government organizations and expanded dental coverage of low-income Islanders and seniors.
"Overall, I'm pleasantly happy with what I've seen so far in the budget but the devil will be in the details as usual," Beaton said to reporters.
$258 million in spending
Spending by the province is projected to increase $258 million in the current fiscal year, which started on April 1. That's up 12 per cent compared to the year before.
To that, Beaton said Opposition had "an important note of caution for government."
"It is not enough to throw money at issues. Government really needs to understand what the issues are and determine appropriate methods to address the underlying concerns," she said.
"Spending millions of dollars to invest in new physicians and nurses doesn't matter if government isn't doing the work to retain those positions on P.E.I. Piecemeal increases to wages for early childhood educators does little to ... address the issue of retaining those skilled workers in that sector."
Liberals 'absolutely mystified'
The Liberals said government spending was problematic.
"There appears to have been little effort by government to control any aspect of its spending, light of the crisis," said former finance minister Heath MacDonald.
"We understand perfectly the need for continuity of services during a difficult time but rising budgets for every department is puzzling."
MacDonald went on to say the party was "extremely concerned" that the budget didn't accurately reflect the current state of the economy amidst a global pandemic.
"In recent days, the minister of tourism has offered bleak forecasts about revenue losses this year and yet, unbelievably, government is forecasting an increase in retail sales tax revenue. In this part of the house, we're absolutely mystified by a belief that sales taxes this year will rise."
'The right direction'
While the projected spending didn't sit well with the Liberals, the promised investments were welcome news to small businesses which have taken a big hit because of COVID-19.
Their tax rates will be further lowered from three to two per cent as of next year.
"This is an important piece ... we've been advocating for for quite some time. I think, coupled with all the other government programs, government relief, it all fits together, it all has its place," said Gerard Adams, Interim CEO of the Greater Charlottetown Area Chamber of Commerce.
"For now, it's heading in the right direction and this is a welcome day for the business community and the chamber."
'A lot more work' to be done
The budget also includes more funding for fertility treatment and for developing midwifery services.
Women's Network P.E.I. said while there are lots of community and female-focused investments in the budget that it's happy to see, the hope is for government to take it even further.
"We do see some increases to wages for early childhood educators and some increased investments there which are great," said executive director Jillian Kilfoil.
"But it's really only the minimum and there's a lot more work that needs to be done in terms of improving wages in a lot of care sectors but especially early childhood education."