Finance Minister Stan Struthers made the announcement, saying the 2012 budget will tackle future challenges with a balanced approach while keeping family issues a priority.
He is to release the third quarterly fiscal update later today.
Numbers released in December show the province is struggling with a near $1-billion deficit, double what the government had anticipated.
Struthers says the past year was difficult, with hundreds of millions in unbudgeted expenses due to record spring flooding.
Struthers says a special warrant for $297.2 million has been approved to address some of the additional expenses.