Newfoundland and Labrador finished the last fiscal year in the red, but in a better position than expected, newly released documents show.

Audited financial statements released by Finance Minister Tom Marshall show that the government concluded the 2012-2013 fiscal year, which ended last March, with a deficit of $195 million.

That's $63.4 million better than the deficit of $258.4 million that had been forecast.

Marshall said the change "is primarily the result of lower than expected expenditures during the year."

The statements were released Tuesday.

Last December, Marshall said the government is also expecting to finish the current fiscal year with a lower deficit than first thought. Marshall said the government at that time was expecting a deficit of $450.6 million, down from the $563.8 million announced in the March budget.

The government expects to have a balanced budget in 2015.