10/16/2013 10:40 EDT | Updated 12/16/2013 05:12 EST

New Brunswick had $508 million deficit last year, $97 million more than forecast

FREDERICTON - The government of New Brunswick says it incurred a $508 million deficit for the last fiscal year, about $97 million higher than it projected.

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.