The council is set to spend £2.6m more than its budget allows for this year – £1m less than previously expected three months ago.
The projected overspend fell from £3.6m in at the end of 2018 and could come down further once the financial year ends.
Head of financial management Andrew Baldwin said that although this is a “significant” reduction, the figure is expected to come down as the year goes on.
A quarterly report presented to the audit committee on Tuesday night looked at the amount spent so far this year, what it has committed to and what is forecast for the final three months of the financial year.
It showed that by December 31, the council had already spent around 80 per cent of its budget.
The biggest overspend is expected to be made the Children, Young People and Culture department in which £4.5m extra is set to be spent.
Meanwhile three other departments are each expected to overspend by more than £1m.
This is to be offset by using council reserves.