Prince Edward Island Budget 2024: Give the Green Light for Growth

The Government of Prince Edward Island’s 2024 Budget introduced on February 29th contained noteworthy announcements in healthcare and housing. However, came up short for business and continued to add to the debt with deficit spending forecasted. The deficit is projected to be $85.5 million this year and the government is projecting to run deficits for the next three years which accumulate to $230 million of added provincial debt for Islanders.

While the deficit spending is concerning, PEI is forecasting strong growth over the next three years with nominal GDP expected to grow between 6-6.6%. This ambitious forecast is much higher than the private sector projections, however the optimism is welcome. If the government wants to maximize growth by unleashing its full potential, a surefire way to do so is by reducing the regulatory burden facing the private sector in PEI

Reducing regulatory burden is not as simple as “getting rid of red tape,” in fact, many regulations are put in place for good reason. The important piece is getting regulation right. Presently, other jurisdictions across Canada are taking steps to reduce the burden their governments are placing on businesses and are doing deep dives to make their provinces more business friendly. Nova Scotia has an Office of Regulatory Affairs and Service Effectiveness (ORASE) and Alberta has a Ministry of Service Alberta and Red Tape Reduction and both are doing remarkable work in their respective provinces. Creating a positive environment for entrepreneurs to thrive and for the free market to flourish without unnecessary government burden is a major pathway to economic prosperity, and that’s what these government departments and offices are doing. And its not just limited to the businesses on main street. Nova Scotia’s ORASE is now also focusing on reducing burden in housing development and healthcare, two major areas where the province has plans to improve.

Government should explore ways on getting regulation right. Implementing maximum response times from government, creating business impact assessments, and helping businesses navigate through the day-to-day complexities of government are just a few examples of how a dedicated supports could improve the regulatory landscape, but its only scratching the surface on what could be accomplished. While the private sector is responsible for creating economic activity, government is responsible for setting the right environment. Getting regulation right will help create that environment for business and will foster a dynamic and competitive economy for generations to come.

Rhonda Tulk-Lane is the CEO of the Atlantic Chamber of Commerce, a nationally accredited organization representing more than 16,000 businesses in Atlantic Canada through its network 90 Chambers of Commerce and corporate partners.