Wade MacLauchlan says the organizational changes he is proposing would improve the combination of program areas by those departments responsible for them.
The changes would see a department responsible for communities, land and environment; and another responsible for workforce and advanced learning.
The Department of Innovation and Advanced Learning would be responsible for economic development, and the Department of Environment, Labour and Justice would be responsible for justice and public safety.
Responsibility for the energy portfolio would move from finance to transportation and infrastructure renewal.
But MacLauchlan says the changes won't go into effect until after the next provincial election, expected this spring, and assuming the Liberals are re-elected.
MacLauchlan also announced Tuesday that Brooke MacMillan's appointment as CEO of the P.E.I. Liquor Control Commission has been rescinded.
And he appointed lawyer Shauna Sullivan-Curley as the province's first ethics and integrity commissioner to oversee the disclosure of expenses, conflict of interest in the public service, and the strengthening of the Code of Conduct and Oath of Office.
The cabinet is pushing ahead as well with plans for greater disclosure of expenses, including travel, hospitality, and meals for elected and senior government officials.