FREDERICTON - New Brunswick posted a smaller deficit in the last fiscal year than it expected, but its net debt grew.
The provincial government released audited financial statements today for 2011-2012 showing a $260.6 million deficit — $188.2 million less than what it reported in the spring budget.
But its net debt increased by $430.1 million to $10 billion.
The Finance Department says spending was down by $128.8 million, marking the first time in the last 11 years that expenses decreased from the year before.
Finance Minister Blaine Higgs says departments including health, education and economic development spent less than their budget targets.
But Higgs says that was partially offset by additional costs coming from pensions and the province's response to flooding that happened in March.