VICTORIA – British Columbia is feeling the effect of continued global economic uncertainty, and the Province will need to exercise continued fiscal discipline in order to balance the budget by 2013-14, Finance Minister Kevin Falcon said Monday with the release of the Second Quarterly Report.

The Province’s projected deficit for 2011-12 has deteriorated by $313 million since the First Quarterly Report, rising to $3.1 billion.

B.C. will continue to maintain a forecast allowance of $350 million as a buffer against future economic and fiscal risks.

The forecast reflects a $303-million decrease in revenue, mainly due to lower corporate income tax revenues, the impact of lower commodity prices on natural resource revenue, and reduced net income projections from commercial Crown corporations.

The Province’s projected spending in 2011-12 includes $30 million in additional statutory emergency program flood-related costs, partially offset by a net $20 million reduction in operating expenses. Government continues to face significant spending pressures that ministries and agencies will work to manage within existing budgets, with additional funding from contingencies if necessary.