Newfoundland and Labrador forecasts deficit of $450.6 million for this year

ST. JOHN’S, N.L. – Newfoundland and Labrador is now projecting a lower deficit of $450.6 million as it released its fiscal update.

That’s down from a deficit of $563.8 million projected in the provincial budget last March.

Finance Minister Tom Marshall says overall government expenses are expected to be lower while the predicted price of oil is higher at $US107 per barrel.

Marshall says the province’s net debt is also projected to fall to $9.1 billion from $9.5 billion.

He says the province is leading all provinces in GDP and capital investment growth.

The provincial government also released an update on its unaudited deficit for 2012-13, saying it was $198.8 million — lower than the $430.9 million it had anticipated when it brought down its spring budget.

Marshall says the government is still working towards balancing the books in 2015-16.

Newfoundland and Labrador relies on offshore oil earnings for about one-third of its revenues.