Flaherty's announcement has confirmed speculation in the Canadian media that the budget would be announced on the last Tuesday in February. He also reinforced the message that tax cuts are unlikely to feature heavily in the budget.

"In this budget, we will be doing what households and businesses do when things are uncertain: we will be acting in a responsible manner," Flaherty stated.

"Canada’s economic and fiscal strength gave the Government the opportunity in its October 2007 Economic Statement to provide broad-based tax relief to individuals and businesses, while staying in surplus. Few countries in the world have this opportunity, and Canada is showing leadership in these uncertain economic times," he added.

According to the Finance Minister, tax relief announced in the October Economic Statement will amount to almost CAD60 billion over this and the next five fiscal years. Combined with previous tax relief introduced by this Government, total tax relief over the same period will be in the region of CAD200 billion, Flaherty claims.

The 2008 budget will include the Debt Management Strategy, which sets out the Government’s objectives, strategy and plans for the management of its domestic debt and foreign currency liabilities.