FREDERICTON, N.B. – The provincial deficit fell $188-million more than expected last year.

Audited financial statements show the province’s 2011-2012 deficit at $260-million.

Finance Minister Blaine Higgs believes the province is on the right track.

“We are seeing very encouraging signs that we can meet our goal but it’s going to require some very prudent behaviour from everyone. We have some very big hurdles to overcome in the coming years.”

The province’s debt grew by $430-million, $200-million less than expected.