In this week's episode of On Point, host David Cochrane reviews a year of political highs and lows with Premier Kathy Dunderdale.

Dunderdale said 2013 was a difficult year for her and her party, with large budget cuts and a significant deficit.

"No question, it certainly has been challenging," said the premier.

"We started the budgetary process last year, I mean, we knew we had a significant deficit to wrestle down."

Dunderdale said Muskrat Falls, mining in Labrador, and off-shore oil developments are some of her main focuses in 2014.

But she admits there are significant challenges facing the Tory party in the year to come.

"In education, we have challenges," Dunderdale said, "In health care, we certainly have significant challenges with an aging population."

You can watch David Cochrane's full interview with Kathy Dunderdale in the video above.