The Manitoba Government says it is making progress as it moves closer to a balanced budget.

Finance Minister Scott Fielding released the province's third-quarter report for the 2018-2019 fiscal year Monday afternoon. According to numbers from the end of December, the province is expected to end the fiscal year, on March 31, with a deficit of $470 million. Fielding says that is a $225 million improvement over last year's $695 million dollar deficit.

"Since forming government in 2016, we've really embarked an ambitious plan to fix the province's finances, repair the services and rebuild the economy," he adds, " we're on track and we're really getting the job done."

However, Fielding notes debt servicing costs are projected to exceed one billion dollars for the first time in Manitoba's history this year which he says is "a concern".

"Debt servicing charges still remain an issue and really impair our ability to make important investments in things like health care, education and social services as well as capital projects."

Total expenditures are projected at just over $17 billion. Fielding notes $6.5 billion is earmarked for health care which he says comes out to 42 cents for every dollar the province spends. Fielding adds health care is expected to come in $240 million under budget by the end of this fiscal year. 

"We're seeing real results and we're managing the health-care system more effectively," he indicates.

Fielding says the province is sticking to its commitment of reducing the PST to 7% in its first term.

The province is expected to deliver the 2019-2020 budget on Thursday.