The Canadian Taxpayers Federation is calling on Premier Rob Lantz to rein in government spending after the province’s auditor general issued a warning about Prince Edward Island’s unsustainable debt burden.

“Island taxpayers can’t afford to keep footing the bill for a government that spends more than it takes in,” said Devin Drover, CTF Atlantic Director. “The auditor general is sounding the alarm and the Lantz government needs to listen before the problem gets even worse.”

Auditor General Darren Noonan reported last week that the government has increased the province’s debt to more than $3 billion. This includes borrowing $129 million last year, nearly $80 million more than budgeted.

Noonan cautioned that increasing debt and ongoing borrowing will threaten the province’s credit rating, noting that overspending by the government has become a serious concern.

“The auditor general couldn’t have been clearer: the province is living on borrowed money,” said Drover. “Lantz needs to stop the spending spree and end reckless borrowing before Islanders are buried in debt.”

A credit rating downgrade would drive up the province’s borrowing costs even more. Islanders already pay about $170 million annually in interest charges, or $930 per person. Debt interest charges leave less funding for essential services and potential tax relief.

“Every dollar wasted on interest is a dollar that can’t be used to help Islanders,” said Drover. “The longer the Lantz government waits to act, the harder it will be to fix this mess.”

The CTF is calling on the Lantz government to immediately freeze new spending and launch a full review to root out wasteful spending. Other provinces, like Newfoundland and Labrador, have found billions in potential savings through similar exercises.

“The simplest way for the premier to show he’s serious about fiscal responsibility is to freeze new spending and cut waste,” said Drover. “Islanders deserve a government that lives within its means, not one that racks up more debt for future generations.”