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Manitoba is projected deficit has ballooned by half a billion dollars.

A financial update Monday now projects the province to have a $1.3 billion shortfall.

The main culprit is over-expenditure in health care, which is leading to an audit of regional health authorities.

The previous forecast was $796 million.

The healthcare overruns came in at $438 million, with $230 million of that coming from RHAs.

The findings from the audits are expected to be shared in the new year with suggestions on how to save money.

Despite the increased numbers, provincial finance minister Adrian Sala said the fiscal update is still good news, as it's a drop from last year's deficit, and Manitoba has 21,000 more jobs compared to this time last year.