Flaherty told reporters on Wednesday that while there remains room for fiscal measures in the budget, the government was sticking to its pledge to reduce the public debt by CAD10 billion, starting with a CAD3 billion cut in the coming fiscal year.

"No one should expect large tax reductions in this budget," he stated, reiterating that the government has already introduced billions of dollars in tax cuts for comanies and individuals, equal to about 1.4% of Canada's GDP.

"That is a huge stimulus to the Canadian economy - much more, for example, than our American colleagues are thinking of doing in the United States," he observed, pointing to the $150-billion US fiscal stimulus package designed to keep that country out of recession this year.

Flaherty also argued that after cutting taxes by about CAD10 billion, the government should concentrate on fiscal stability.

"I think most Canadians would say this is a time for steady economic management, steady hand on the tiller, make sure that we navigate our way through this time of economic slowness until we're back in a time of more significant economic growth," he reportedly explained.

The Canadian Finance Minster refused however, to confirm speculation that he would announce the next federal budget on 26th February, revealing only that the budget will come before the conclusion of the fiscal year at the end of March.