P.E.I.'s projected deficit is $1.7 million less than previously forecast, Finance Minister Allen Roach said in the legislature Wednesday.

Roach said the projected deficit for 2016-17 is $7.9 million.

A stronger economy and increases in provincial revenues helped lower the deficit, he said.

"Our government has an ambitious plan to diversify and grow our economy and that plan is working," Roach said.

Economic update

The finance department's economic update included the following: