Prime Minister Stephen Harper gave hints Monday about the upcoming budget, saying it is important to stimulate the economy now but to avoid long-term deficits.
He indicated tax cuts for middle-income Canadians may be part of the budget. He added he did not have specifics at this time, but was confident their budget would be in "the interest of the economy and will carry the overall judgement of the Canadian people."
Using conciliatory language, he said it appeared Liberal leader Michael Ignatieff is more concerned with avoiding a long-term deficit than toppling the government with the Liberal-NDP-Bloc coalition.
Ignatieff held a press conference immediately afterwards.
"I think every Canadian knows we have to go into temporary deficit to drag this car out of the ditch but I think every Canadian knows we don't have to tie something to the bumper" to make it last longer than it needs to, said Ignatieff.
Both leaders touched on the impending inauguration of US President-elect Barack Obama.
Prime Minister Harper said he looks forward to speaking to both outgoing President George W. Bush and incoming President Obama.
Ignatieff focused on the environment, petroleum exports and Arctic sovereignty as key issues that must be discussed with the new American president.
