A smaller deficit than anticipated is being forecasted for Saskatchewan's provincial budget.

Humboldt-Watrous MLA and Finance Minister Donna Harpauer released the third quarter update on Friday, saying that the projection is now at $595-million.

The initial forecast had the budget at a deficit of $696-million.

Harpauer says that it doesn't mean difficult decisions will be avoided.

"We're forecasting growth, so that is extremely encouraging. It's not going to be an easy budget that we're going into. There are going to have to be some tough decisions made to keep us on track," she noted. "The decisions made previously have kept us on track, and we're going to have to be very diligent in our decisions for the next budget."

Harpauer says that all of government has pitched in to help already reduce the budget, and aiming to balance the books will take more work.

"I think the team has recognized that we have a goal to balance in three years, and I have to commend all my government colleagues all as well as the caucus for supporting decisions to be made."

She added that the Saskatchewan Party's plan is to have the books balanced by 2019-20.

Revenue is projected to be down $222-million, while expenses are projected to be down $273-million.