P.E.I. budget: 5 key things to look for

Spending is up

The Education Department and Health PEI are both seeing a three per cent increase in their budgets. UPEI, Holland College and College Acadie are all getting one per cent increases to their operating grants.

The exception is Agriculture and Fisheries, where spending is down five per cent.

HST is going up

HST will go from 14 per cent to 15 per cent on Oct. 1, raising an estimated $11 million for the province this year and $22 million in subsequent years.

Income tax is going down

The basic personal exemption is going up from $7,708 to $8,000, effectively lowering income tax for everyone. The government is also increasing Low-Income Tax Reduction Amounts and Refundable Sales Tax Credits.

We have a deficit again

The government said last June there would be a surplus this year, but has delivered a $9.6M deficit.

Buying your first home got cheaper

The one per cent Real Property Transfer Tax has been dropped for first-time home buyers.