Finance Minister Tom Marshall has forecast deficits of about $400 million for this fiscal year and $211 million the following year.
Marshall has stressed that the province has to adjust its spending accordingly so it's sustainable for the long-term.
Much of the financial shortfall is due to a drop in oil production and the end of Atlantic Accord payments.
Cash from Ottawa under the joint offshore management program put about $536 million in provincial coffers last year.
The province relies on offshore oil cash for about one-third of its revenues.
Also on HuffPost