Premier Danny Williams says balanced books are not expected for the next Newfoundland and Labrador budget. (CBC)

Higher oil prices will not be enough for Newfoundland and Labrador to balance the books in the upcoming budget, Premier Danny Williams says.

"Delivering a balanced budget is just achieving a number," Williams said Tuesday night, while celebrating a Progressive Conservative victory in the Topsail byelection.

"It's important that we keep the momentum going in this province," he said, referring to the province's economic growth, which has been robust compared to most other provinces.

The provincial budget will be brought down March 29.

Last year, amid a slumping oil market and in the midst of a global economic crisis, the government forecast a deficit of $750 million. A fall update, which took rising oil prices into account, shaved more than $300 million from that projection.

Last year, the government expected Brent crude oil to trade at an average price of $50 US. The commodity has been trading over $80 US for weeks.

Williams would not comment Tuesday night on the current status of this year's deficit.

For next year, Williams said cabinet has chosen not pursue an agenda of austerity.

"In order to deliver a balanced budget, we could have gotten into hardships," he said.

"In order to get there, it meant that we really had to be looking at cutting in various departments, and also not continuing to provide additional services to various parts of the province, particularly rural Newfoundland and Labrador."