Halfway through the fiscal year, the provincial government is projecting a deficit 35 times larger than the surplus it budgeted for in the spring.

The fiscal update showed a $427 million deficit forecast for the year — a $79 million increase from the first quarter update, and significantly higher than the $12 million surplus at budget.

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The total gross debt for the province is also forecast to rise by $962 million dollars for the year, a 2.5 per cent increase from budget, to sit at $39.3 billion.

Expenses are up 2.5 per cent, about $521 million — it

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