Emerging from Friday's pre-budget meeting with provincial premiers, Canada's Prime Minister Stephen Harper revealed, in a bid to stimulate the economy, all premiers understanding the need for unprecedented collaboration, at a time when the world economy faces dangerous times, have agreed upon immediate measures. As well, his government has agreed to run significant deficits, in its bid to deal with the global recession.

With Harper's government scheduled to announce a stimulus package, together with the federal budget scheduled for presentation on 27th January, opposition leaders are prepared to vote the government to step down, if the budget is not in the best interests of Canadians. Even as, Canada 's resource-rich economy has been slowed considerable, due to the credit crisis and global sell-off of commodities, and over 100,000 jobs lost in the months ending 2008, Liberal Leader Michael Ignatieff, the message is that Canadians do not want political instability on top of economic problems. It is for Harper to undo the damage caused by his party.

Running a 'very significant deficit in the short-term', in order to sustain economic activity and confidence in Canada, as a temporary measure till the economy recovers, his government will borrow money at low interest rates, injecting it into the economy, a cash injection that has become necessary, due to the fact that in light of the global recession, businesses are afraid to invest, households afraid to spend and bondholders are afraid invest.

Though, spending on infrastructure, including helping the unemployed was the main focus of talks with Canada 's premiers and territorial leaders, Harper refused to divulge any specific funding commitments, though the multi-billion-dollar price tag is to be revealed in the budget. However, ministers have reached an agreement on a massive economic stimulus package, central to the budget, which includes infrastructure spending, changes to the employment insurance programme, money for job re-training and aid for struggling industries. In response to Ignatieff's call for tax cuts for the lower and middle-income earners, Harper said: 'I would remind you it was Mr. Ignatieff, who called for middle class tax cuts less than two weeks ago. We're listening. Not just to what he, but what many others say.'

The only G7 country to run a surplus in recent years, however, Canada's federal officials say the government is poised to run a $40-billion Canadian (US32 billion) deficit, most of it a result of economic stimulus measures.