Prince Edward Island's Liberal government has announced it will introduce the harmonized sales tax in a $1.58-billion spring budget.
Finance Minister Wes Sheridan says negotiations have begun with the federal government to introduce a 14 per cent HST by next April.
That would be down from the current 15.5 per cent combination of the GST and PST.
The province is forecasting a nearly $74.9-million deficit — down from $78.6-million in the fiscal year that ended in March.
But the province's net debt is expected to climb to $1.97-billion by March 2013, or about $14,066 for every man, woman and child in the province.