Alberta Finance Minister Ted Morton gestures during a news conference in Edmonton Thursday. Treasury Board President Lloyd Snelgrove is on Morton's right. (CBC)Higher than expected oilsands royalties helped Alberta end its 2009-10 fiscal year with a $1-billion deficit — a substantial drop from the $4.7 billion projected in the spring of 2009.

Revenue was $35.7 billion, $4 billion higher than originally forecast, according to figures released Thursday by Alberta Finance Minister Ted Morton.

Expenses were $36.7 billion, $303 million higher than forecast.

For the first time ever, revenues from oilsands mining surpassed those from the natural gas sector.

The lower deficit means the province won't have to use as much money from its Sustainability Fund, which was valued at $15 billion on March 31, 2010.

The Heritage Fund earned just over $2 billion last year, an amount nearly three times the $711 million that was originally estimated in the budget.

Despite the good news, officials are still cautious about the upcoming fiscal year. On budget day in February, the province forecast Alberta would end the 2010-11 year with a deficit of $4.7 billion.

"While our budget forecast of this year of $4.7 billion is still a real number, we have seen in the last year that number change," Treasury Board president Lloyd Snelgrove said Thursday.

But critics said the numbers don't paint a complete picture of Alberta's true financial situation, particularly the $2.5 billion the province borrowed last year.