NEWCASTLE council has blamed a "system error" for a $8.68 million budget turnaround. The council's early figures for the 2013-14 financial year show it will record a $5.7 million deficit, down from the $29.9 million originally forecast and the $19.9 million revised mid-year. As well as the $8.6-million accounting error, wages and employee costs were $6.6 million less than expected, income from rates was $2.4 million more and income from tip fees was $2 million more than expected.