ALBANY— Gov. Cuomo is sharpening his scalpel to cut $350 million from this year’s state budget — and as much as $3.5 billion next year.

Cuomo’s Budget Division released the deficit projections yesterday, attributing them to weak and unsettled economic conditions globally, volatility in the financial markets and lagging employment.

Cuomo said he may need to call the state Legislature into session to balance the $131.4 billion budget for the fiscal year that ends March 31. But first, state agencies are being ordered to cut discretionary spending, freeze hiring and leave vacancies unfilled “where possible,” Budget Division spokesman Morris Peters said.

Legislative Democrats are clamoring to extend a “millionaires tax’’ now set to expire Dec. 31.

But Cuomo, who remains committed to promised 4 percent spending increases in education and Medicaid in 2012-13, also remained steadfast yesterday in his opposition to the millionaires tax.