Alberta finance minister offers gloomy forecast for 2013

Alberta's finance minister is forecasting more belt tightening and budget cuts in 2013,even hinting that the province's balanced operating budget could also be in jeopardy.

While Alberta is still on track to post a $3billionover-all deficit this year, Doug Horner saidhe'sworried aboutnext year.

Horner met with cabinet ministers Tuesday, issuing orders that tough decisions will have to be made.

However he didn't say how much moreeach department is expected to cut, but he did saynew taxes are noton the table at this time.

Horner said volatile oil prices and increased oil productionin the United Statesare having an even deeper effect on Alberta's bottom line than expected.

Alberta is being forced to sellits bitumen to the U.S.,its major international oil customer,at a steep discount, said Horner who pointed toAlberta's need for new pipelines to the coast to reach markets in China and South America.

Opposition MLAs accuses the province of mismanaging the budget.

"This government obviously believes that they can make big promises to deliver crucial public services and then take them back as soon as its inconvenient," said NDP leader BrianMason.

On Tuesday Alberta'seducation minister warned school boardsthe government may not be able to deliver on its promise for new education funding.

Last spring, Premier Alison Redford promised to increase education grant funding by one per cent next year, and two per cent in the second and third years.

Horner's dire outlookcomes the same day Edmonton's chief economist predictedthecitywill continue to outpace the rest of the country in economic growth.