Drop in revenue leaves big hole in 2012-2013 B.C. budget, boosting deficit

VICTORIA – The B.C. government missed its budget target for 2012-2013 by millions of dollars, leaving a deficit of $1.5 billion.

In the final public accounting for last year, Finance Minister Mike de Jong says weaker revenues created a larger than expected deficit.

The minister says forecasted revenues were down by $1.1 billion, which were partially offset by $668 million of savings in government spending.

The drop in revenue is mostly due to the decline in resource sectors including petroleum, natural gas, natural resources and minerals.

The $1.146 billion deficit is an increase of $178 million from the predicted deficit of $968 million last February.

De Jong says the deficit numbers mean all cabinet ministers will receive a 10 per cent pay cut as part of the government’s balanced budget law.