MEECH LAKE, Que. - Finance Minister Jim Flaherty says the federal deficit will be "substantially more" than the government projected in its budget in late January and growth will be slower.

Flaherty says the recession has impacted government revenues from personal and corporate taxes and raised spending requirements. That means the financial shortfall - originally forecast at $34 billion for 2009-2010 - will be higher.

The finance minister plans to update Canadians on the government's finances and economic projections in June.

In its recent budget, Ottawa also projected the deficit for 2010-2010 at $30 billion.