The Canadian Press

Newfoundland and Labrador is projecting a revised deficit of $443 million for the 2009-10 fiscal year, down from the $750-million deficit it forecast in its spring budget.

Finance Minister Tom Marshall delivered the provincial government’s fall financial update Monday, saying strengthened oil prices are the main reason the deficit is lower than expected.

“The last year has been uncertain from a global economic perspective,’’ Marshall said in a statement.

“While the volatility of the markets and the exchange rate continues to present challenges for the country, our government is well-positioned to manage its way through the downturn and the recovery.’’

Marshall also said Ottawa’s decision to change the formula that influences revenues from the province’s offshore oil sector was to blame for the red ink.

The government said it expects net debt to be $8.6 billion by the end of the fiscal year, down from the $12 billion it was nearly five years ago.

But at $15,733 for every man, woman and child in the province, that’s still the highest per capita in Canada.

Marshall said the province’s consecutive surpluses in recent years have helped it weather the recession, but he acknowledged the toll the economy’s plunge has taken on the mining, fishing and forestry industries.

“We had unprecedented surpluses in the past that helped us become more self-reliant,’’ he said.

“However, the current global economic uncertainty dictates that we moderate our expectations to ensure our spending of public money is sustainable into the future.’’

Marshall said high consumer confidence and skyrocketing housing prices are signs that the province has navigated the economy better than other provinces.

But he said gross domestic product is expected to go down 8.5% this year because of lower mineral, newsprint, fish and offshore oil production.