 Finance Minister Mitch Murphy calls his budget preventative medicine.
Prince Edward Island is facing a projected $33.1-million deficit by the end of the fiscal year. The fault for that, says the treasurer, lies squarely at the feet of the federal government.
Since 2002, the province has received $100 million less in federal transfer payments, according to Murphy.
"We are convinced that equalization is not receiving the attention by the federal government that it deserves."
Other new spending
$4.9 million investment in new Atlantic beef plant
$100,000 for 2009 Canada Summer Games preparations
$475,000 each of next 5 years for P.E.I. Sports Strategy
New waste treatment in Mill River
Redesign of Read's Corner
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So Murphy says he was forced to raise taxes on gasoline, cigarettes and green fees on Island golf courses, a growing aspect of P.E.I.'s economy.
He acknowledged government overspending, saying it would trim its expenditures in order to avoid imposing an increased tax burden on Islanders.
"We must take the medicine now rather than wait until major surgery" is needed, he said.
However, said Murphy, the government was "very congnitive" of the negative impact on the economy of past cuts, including deep slashing in 1993 and 1994.
Budget highlights include:
- Overall revenue of $1.032 billion.
- Overall expenditures of $1.065 billion.
- $245,783 in federal equalization payment income.
- $105,700 in Canada Health and Social Transfer funding.
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Overview 
