Roger Melanson drops projected deficit to $377M

The first quarterly update issued by the new Liberal governmentprojects a deficit of $377.2 million for 2014-15, down about $14 million from the previous projection.

But total expenses are currently projected to be $64.5 million higher than budgeted, according to the Department of Finance.

And while overall revenues were up $78.5 million during the second quarter, keyrevenue streams, includingproperty tax, harmonized sales taxand corporate income tax, were all lower than projected.

"Todays results clearly show that we need a better approach,"Finance Minister RogerMelansonsaid in a statement on Friday.

"Our government is committed to a balanced approach of reducing the cost of government, increasing revenues, and encouraging private sector investment," he said.

The improved projected deficit isdue in part toa one-time payment of $45.8 million from the federal government related to the transition of the Financial and Consumer Services Commission to the new federal Co-operative Capital Markets Regulatory System.