The Alberta government finished the 2015-16 fiscal year with a $6.4-billion deficit, $324 million higher than forecast in the October 2015 budget.

The deficit is just one of many indicators showing how the economic downturn is affecting the province's finances, according to a financial update released Wednesday.

Finance Minister Joe Ceci noted the final figure for the deficit was close to the $6.1-billion figure projected in the October budget.

"I think it shows that, overall, we as a government did a really good job controlling our costs, making sure that every tax dollar was spent in the best way possible," Ceci said.

He said the "deficit is what the deficit is," noting that the government is trying to reduce operational spending while putting money into infrastructure to get people back to work.

However, the annual report shows the extent to which resource-dependent Alberta was hurt by oil prices that plunged through the latter half of 2015.

Resource revenue dropped by $6.2 billion and the economy contracted by 3.7 per cent in the 2015 calendar year.

Though corporate and personal income tax rates went up last year, the overall amount collected was down $716 million from the previous year. Businesses are not doing as well, so they are paying less. The lower personal income tax figure is a reflection of the thousands of Albertans who lost their jobs last year.

Revenue from the tobacco and gas taxes was lower than budgeted.

Overall, government revenue was $1.3 billion less than forecast in the October 2015 provincial budget, with expenses coming in $964 million lower than expected.

First year of NDP criticized

Ceci acknowledged the province's finances took a drastic turn for the worse last fall.

"I think we were all surprised that things got as bad as they did so quickly," he said. "Thankfully, I think we see the bottom and we're kind of coming out of that."

The province's contingency account sat at $3.6 billion by the end of March. But it will be drained to zero this year.

Alberta ended the previous 2014-2015 fiscal year with a surplus of $1.1 billion.

Interim Progressive Conservative leader Ric McIver said the annual report shows the effects of the NDP's first full year in government.

"They've taken a $1.1-billion surplus from the previous fiscal year and delivered a $6.4-billion deficit," he said.

McIver said the NDP is correct to say Alberta has one of the strongest balance sheets in the country, but he reminded them it was inherited from the previous PC government.

"And they are doing everything in their power to dismantle and destroy that positive balance sheet with their policies and their actions."

McIver said this year is just the start, noting the government is projecting a $10.4-billion deficit in the current fiscal year and has no plans to balance the budget until 2024.

The government should take the challenge announced by the PCs earlier this year to cut $4 billion in spending, he said.

The Wildrose said the report shows the NDP have no fiscal restraint and are continuing with policies that are hurting the economy.

"Instead of taking the side of families and their concerns seriously, the NDP government plowed forward with an agenda that is now leading to further job losses, less opportunity and higher taxes," party leader Brian Jean said in a news release.

Jean added that increased borrowing means the government is paying more in interest. That money could be better spent on building hospitals and hiring nurses and teachers, he said.

Alberta Party Leader Greg Clark was also displeased with the report.

He said the NDP over-estimated how much revenue would be generated by last year's tax rate increases. He said the government failed to spend the $34 million of money set aside to diversify the economy.

"This government does not know how to manage an economy in transition," Clark said in a new release. "They are merely thinking short term and governing for today, rather than for the future."