P.E.I. Treasurer Wes Sheridan is expected to announce spending cuts and job losses in his budget address on Wednesday afternoon.
Over the last few weeks, the Liberals have confirmed departmental spending cuts of up to five per cent and the loss of at least 300 jobs from the civil service. Premier Robert Ghiz said his government will spend more on health care, though the department's budget will not increase at the rate it has in recent years.
The premier says he expects most of the civil service jobs will be eliminated through attrition, but he does admit some pink slips could be delivered.
NDP labour critic Ron Kelly said the government is taking the wrong route in cutting hundreds of public sector jobs.
He said there needs to be an effort to create jobs in both the public and the private sector.
Kelly also said job cuts are a negative drain on the economy because people who lose their jobs will either move to another province or shift from receiving a paycheque to receiving employment insurance or social assistance.
The end result will be less money in the local economy for groceries, clothing and housing, he said.
Meanwhile, Jim Carragher, president of the P.E.I. Real Estate Association, said there are a number of positive things happening in the real estate market right now that will help offset the impact of job cuts.
He said P.E.I. has some of the most affordable housing in the country and is an attractive option for people looking to retire.
"Things like very low, low interest rates. We are seeing quite a number of people moving back to the Island and with that, you know, that's increasing our population. And people coming back from the west and from Ontario and from the New England states. We are also seeing the immigration factor to the province is really contributing positively to the real estate market.
Sheridan is expected to begin delivering the budget at 3 p.m. on Wednesday.
Live video of the budget speech, a live chat, and in-depth analysis will be available on the CBC P.E.I. website as soon as the address begins.