CHARLOTTETOWN -- Prince Edward Island's annual deficit dropped by more than $25 million in the 2014-15 fiscal year.
In the province's financial report published Wednesday it records an annual deficit of $20.3 million, a $25.6 million improvement from the previous year.
The government says it is the third straight year the deficit has been reduced.
Finance Minister Allen Roach credits higher revenues and restrained program spending for the deficit reduction.
"Islanders expect their government to be fiscally responsible," he said in a news release.
"These statements show that we are living within our means while investing in important frontline services that Islanders depend on."
The report also shows the province's net debt increased by $30 million, but its gross domestic product increased as well, which the government says means the net debt is becoming more sustainable.
In its budget released in June, the government projected the consolidated deficit in 2015-16 to be $20 million with a goal of balancing the budget by 2016-17.
