Dunedin City Council debt is slightly higher than budgeted for this financial year to date.

The latest figures show the council's net deficit was $5.8m for the eight months to the end of February.

That's almost $400,000 worse than budget.

It's due to lower returns on international investments, higher depreciation costs and reduced revenue.

But the council's also had less expenditure than expected for the same period, and lower interest costs.

Over the long term it's paying off debt faster than planned.