Manitoba's finance minister says the government will stay the course in its attempt to balance the province's books within eight years.

That challenge got a little more difficult this week, after second quarter financial results show the provincial deficit has climbed beyond $1-billion.

Cameron Friesen says the deficit is 93-million dollars more than what was anticipated in the spring, for a number of reasons.

"Revenues coming back to government from Manitoba Hydro and MPI are not at the place where we had expected them to be," said Friesen.

Lower than expected revenue from sales, payroll, and tobacco taxes, and higher-than-forecast spending in some areas have also factored into the spread of red ink.

"There are some problems facing our province. We inherited a mess and the previous government's failure to heed the warnings that were given to them by credit agents and lenders did not produce a path to balance or sustainability. That's our challenge now and we're up to the task, but it's going to take some time to get the results we want."

The Tory government is looking at cost-saving measures through an ongoing value-for-money audit of programs and services. One of those programs includes Rent Assist which helps low-income earners with housing costs and has seen costs rise sharply.

"We have some program growth specific to social services where we, as a government, have to make sure that these programs are actually doing what they're designed to do and to make sure the growth we're seeing within them is sustainable."

The opposition New Democrats accuse the province of shifting its failures onto the backs of Manitoba families and suggests the government needs to let go of its ideological commitment to austerity.