The Prince George
Citizen
 THURSDAY, NOVEMBER 14,1991
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Peace force accepted 11^ Bayne’s opponent named 15
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FINANCE MINISTER SAYS SITUATION SERIOUS
Socred deficit coverup claimed
         by Canadian Press VICTORIA — The Social Credit government covered up a worsening British Columbia economic forecast despite being aware of a growing deficit, Finance Ministry information released Wednesday suggests.
  Former finance minister John Jansen knew this year’s projected provincial deficit rose to $1.7 billion months before his party lost the Oct. 17 election, finance officials said in an unprecedented media briefing.
  Jansen, who was defeated, main-
 tained even after the election that the deficit in his last budget was only $395 million. He was aware of the revised budget forecast by August, ministry staff said.
   The new NDP government allowed senior Finance Ministry staff to brief reporters on the province’s economic outlook. The officials did so on condition they not be named.
   Jansen was unavailable for comment.
   This is not the first time a new NDP government has made noise about the deficit it inherited.
   More than a year ago, the Ontario NDP said it was left with a $2.5-billion deficit, compared with the $700 million claimed by the outgoing Liberals.
   That deficit grew to a record $9.7 billion in the Ontario NDP’s first budget this spring.
   The B.C. officials base the increased deficit on figures available by Oct. 11.
   One official suggested that although the deficit could increase or decrease before the end of the fiscal year, it is more likely to rise.
   Decreased revenues combined with more spending accounted for the increased deficit. Lower federal welfare contributions and B.C. Hydro dividends and increased income assistance payouts and flood relief were factors.
   The ministry also revised its forecasted deficit to $2.5 billion next year and $3 billion in 1993-94. Jansen would not have been aware of those revised projections, officials said.
   The Socreds predicted an $800-million deficit next year and $200 million the following year before
 two straight surplus years that would balance their budget over a five-year cycle as required by law.
     Finance Minister Glen Clark said it was premature to say what his government would do to combat the deficit but he described across-the-board budget cuts as a crude approach.
     “I think fairly serious is an understatement,” he said. “It’s very serious. We’re committed to living within the means of British Columbians so obviously the government’s going to have to take action.
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