UPDATE: Province posts lower deficit but higher expenses in 2014-15

WATCH ABOVE: The province’s new finance minister spoke to the media Thursday about the state of the province’s book-keeping. The deficit is down but expenses are up. Julia Wong explains.

HALIFAX – Nova Scotia ended fiscal 2014-15 with a $143.7 million deficit.

The figure is $135.3 million lower than the $279 million deficit forecast in the 2014 budget.

The Finance Department says the lower deficit figure is due to reduced departmental expenses and increased income and sales taxes.

“We’re on the right path. We’re seen improvements in both revenues and expenses from what we were budgeting for,” said new Finance Minister Randy Delorey.

Tweet This Click to share quote on Twitter: "We're on the right path. We're seen improvements in both revenues and expenses from what we were budgeting for," said new Finance Minister Randy Delorey.

He said total departmental spending was down $36.2 million, with the biggest savings coming from the Department of Health and Wellness and from restructuring costs.

The province posted total revenue of $10.6 billion, an increase of $228 million from the estimate. Total expenses came in at $10.8 billion, which was $92.7 million more than the estimate. The jump is due in part to extra spending for snow clearing and environmental cleanups.

An additional $22.9 million in department spending was also approved, which will cover costs such as more money for higher teacher salaries and the new film tax credit.

“Some of the variables on both the revenue and expense side are outside of our control. But to the extent there were items we had control over, in our department, we took conscious effort to control their spending,” Delorey said.

The opposition said the Liberals had luck, not prudent management, thanks to a $110 million revenue boost from prior year adjustments.

“If not for a couple windfalls that were completely out of the control of the government, it could have been worse,” said PC Finance Critic Tim Houston.

“Is this rosy picture sustainable? We’ve gotten to a reduction in the deficit by getting a windfall from the prior year’s adjustment. We know some years we win that and other years we lose it. We have no control over it,” said NDP Interim Leader Maureen MacDonald.

Tweet This Click to share quote on Twitter: "If not for a couple windfalls that were completely out of the control of the government, it could have been worse," said PC Finance Critic Tim Houston.</p><p>"Is this rosy picture sustainable? We've gotten to a reduction in the deficit by getting a windfall from the prior year's adjustment. We know some years we win that and other years we lose it. We have no control over it," said NDP Interim Leader Maureen MacDonald.

The fiscal year ended March 31.

– with files from CP