B.C. deficit on the rise due to revenue drop; spending cuts looming

VICTORIA – British Columbia’s deficit is on the rise again, prompting spending cuts to ensure the government tables a balanced budget for next year, just in time for the May election.

Finance Minister Mike de Jong says the second quarterly report shows the deficit is now projected to hit $1.47 billion, up from his forecast two months ago of a deficit of $1.1 billion.

De Jong blames dropping government revenues from property taxes and falling coal prices.

He says the government has been cutting spending in an attempt to mitigate a projected $241 million drop to government revenues due to declines in the natural gas market.

De Jong says the government has already implemented a hiring freeze and has cut travel and discretionary spending.

Premier Christy Clark says the budget numbers are not positive, but she says the government will keep its promise to table a balanced budget for next year.