The Nova Scotia government is reporting a slight increase in its razor-thin budget surplus.

In a fiscal update issued Thursday, the government reported a surplus of $28.9 million, up $7.6 million from previous estimates.

"We are the first Nova Scotia government in a decade to table back-to-back balanced budgets. Government has laid out a clear, reasonable and sustainable fiscal plan and we are continuing to follow that plan," Finance Minister Karen Casey said Thursday.

The 2017-2018 provincial budget for the fiscal year that ends in March is approximately $10.5 billion.

The government said its revenues from all sources will be roughly $10.6 billion, up $42 million over original budget estimates. Expenses are up about $16.5 million.

The government said it also expects to collect more income tax this year from higher personal taxable incomes and growing national corporate taxable incomes.

Conservative finance critic Tim Houston said those projections don't always pan out.

"We see that come through in decreases in HST revenue, decreases in tax revenue. People just don't have money to spend."

The Nova Scotia government provided a fiscal update on Thursday, projecting a slightly rosier-than-expected budget surplus, despite spending an extra $30 million on health care. (Craig Paisley/CBC)

The Health Department's forecast is now $30 million over budget due to higher demand for surgical and emergency room services, as well as seniors' pharmacare and ambulance services.

The Agriculture Department is also over budget by $7.5 million, mainly due to assistance provided to the province's blueberry and mink-farming industries.

The Municipal Affairs Department, however, is $26 million under budget due to delays related to the Clean Water and Wastewater Fund.

NDP Leader Gary Burrill is urging the Liberals to spend the surplus on reducing poverty rates in the province.

"Absolutely it should be invested. We have the highest child poverty in the country, fastest rising rate of food bank use, fastest rising tuition, we have very serious cuts in the nursing homes, for heaven sake," he said.

"The sound thing for them to do would be to invest [the surplus] immediately in the needs of the people of the province."