Manitoba Premier Greg Selinger says his government is taking a balanced approach by allowing for more deficits.

Selinger says the economic fallout from falling oil prices has caused many governments to revise their forecasts.

The NDP government announced on Friday that it is pushing back by one year its plan to balance the budget by 2017.

Selinger says running another deficit helps the government avoid cuts to programs and services.

The government is to deliver its annual budget on Thursday, and is not ruling out tax increases as it tries to end a string of deficits that started in the 2009-10 fiscal year.

When asked whether the government can avoid tax hikes, Selinger said there are "good prospects" to do that.