Newfoundland and Labrador's auditor general is giving the province a stern warning to mind its money.

Terry Paddon's 2012 report said Newfoundland and Labrador's per capita spending is higher than any other province.

Paddon said the province can't afford to keep spending the way it has been because the government relies so heavily on oil for revenue.

"Revenue is volatile," said Paddon. "It's reliant on a non-renewable resource that ultimately, by its very nature, is going to decline."

Spending doubled over a decade

Last year, the province spent $7.8 billion, two-thirds more than it spent ten years ago, in 2003.

Paddon said government spending, mostly in health care, education, and infrastructure, increased significantly in the past five years.

However, Paddon added that government cannot maintain that pace.

"You got issues around spending that, you know, given the volatility on revenue, perhaps are not sustainable at the level they are," said Paddon.

Premier Kathy Dunderdale has already said it is time to cut spending, and that this year's budget will be in line with a projected shortfall in revenue.