Finance Minister Blaine Higgs released audited financial statements showing that the province fell deeper into the red in 2012-13.
Higgs says the government has restrained expenditures that have led to departmental spending coming under budget for the second year in a row.
But he says revenues continue to fall short of what the government was expecting.
Provincial revenues fell by $270 million, and that was partly driven by higher pension costs for NB Power and a tax revenue shortfall.
Last month, Higgs said New Brunswick's deficit for 2013-14 was forecast to hit almost $500 million.