British Columbia's Liberal government is promising to balance its budget in time for next year's provincial election.

Finance Minister Kevin Falcon has tabled the province's 2012-2013 budget, forecasting a deficit of $968 million dollars for the coming fiscal year.

Falcon says the budget will keep spending increases to a minimum, allowing the province to predict a surplus of $154 million for 2013-2014.

If that prediction holds, the Liberals will be able to campaign on a promise of balanced books before voters go to the polls in May, 2013.

However, the Liberals may also be campaigning on a promise to increase corporate income tax.

The budget includes a measure to increase that rate by one percentage point to 11 per cent - something Falcon says will only happen if the economy performs worse than expected.

Falcon has also dispensed with a plan to cut the small business tax rate entirely, instead leaving it at two-point-five per cent.

The budget notes the future of the controversial carbon tax will be considered.

The final scheduled increase of the tax will take place this July 1.