Nova Scotia Premier Darrell Dexter says his government has hit its stride. (CBC)

In a year-end interview with CBC-TV, Nova Scotia's premier admits his NDP government got off to a rocky start in 2010.

Darrell Dexter said the second half of the year was more fruitful and he feels his government has finally hit its stride.

"I just simply think we had a very difficult first few months of the year," said Dexter. "[The] MLA expense scandal issues that came up, they were difficult."

Dexter became the first NDP premier of Nova Scotia in June 2009, defeating the Conservatives under Rodney MacDonald and the Liberals under Stephen McNeil.

After months of planning, Dexter said, some pieces began to fall into place in mid-2010.

The announcement of the Lower Churchill project, which will funnel hydroelectric power from the Churchill River in Labrador through Newfoundland and then into Nova Scotia, the establishment of emergency-room standards and completing negotiations with the City of Halifax for a new convention centre are all highlights, according to the premier.

But he warns there are tough times ahead for 2011. He said his government is determined to balance the budget in this mandate and that will mean big spending cuts.

Dexter said consultations with municipalities, as well as with people involved in health care and education, are helping to find ways to trim budgets.

"If we don't do it now, then it'll get done later and it'll be much more difficult. We've asked them to work on it with us, and we found ... first of all, they recognize the problem and, secondly, they are prepared to work with us on it," he said.

On a personal note, the premier said he finds the job rewarding, but challenging.

Some people say the greatest challenges for the cash-strapped government are still ahead.