WINNIPEG -- The Manitoba government is looking at a lower-than-expected deficit.
A fiscal update from the province says it is now projecting $872 million in red ink for the fiscal year that ends March 31.
That's $39 million lower than originally expected in last year's budget, and $128 million lower than forecast in the last fiscal update in December.
Finance Minister Cameron Friesen says the province is taking in a little more money than expected from income taxes and fees.
But he says the province's overall debt and the possibility of rising interest rates are big concerns.
The Progressive Conservative government was elected last year on a promise to eliminate deficits within eight years, and to cut one point off the provincial sales tax by 2020.
