OTTAWA–Prime Minister Stephen Harper is defending next week's mammoth budget deficit, saying big-ticket federal spending is essential to restore the confidence of bruised consumers and corporations.

"I think we're in a rare time where you need a deficit," Harper said yesterday, warning that Canada is facing one or two "difficult" years because of the global economic slowdown.

And if Liberal Leader Michael Ignatieff decides he can't support the budget and topples the Conservatives, Harper said he's ready for an election and "prepared to accept the judgment of the people.

"Obviously I have no desire to have an election so I hope we'll get on with governing," he said.

Speaking in advance of the most important budget in years – and a costly one for taxpayers – Harper insisted that the aggressive action is needed. And the Prime Minister, despite his background as a conservative thinker and free-market economist, is unmoved that the return to deficit spending is happening on his watch – a shortfall of $64 billion over two years.

"You have an incredible period of economic uncertainty and pensiveness where consumers are ceasing to spend because they're worried about their jobs, where businesses are ceasing to invest because they're worried about the decline in the economy and poor prospects ... yet we know there are billions of dollars out there," he said.

During an interview in his wood-panelled office on Parliament Hill, Harper hammered home the key goal for Tuesday's budget – "we keep people employed and address the growing problem of unemployment."

He added that "this budget will be very large."

But he said the budget would also be "forward-looking" with measures to exploit business opportunities expected in the future.

Harper suggested the main goal for Canada in the months to come is to buy time and prop up its economy while other nations tackle the problems that sparked the global meltdown in the first place.

"None of the source of the slowdown is in Canada. This is a global recession emanating from the financial sectors of other countries."

Still, he reiterated the government view that the global recession won't hit Canada as hard as other nations and that this country will come out of it sooner. But that will require "everybody gets their shoulder to the wheel," he said in a pointed message to opposition parties who have threatened to topple the minority Conservatives.

On that front, Harper voiced some respect for Ignatieff, whom he said has "learned and improved quickly" since entering politics.

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And he appeared to shed few tears that Ignatieff's predecessor was out of the picture. Stéphane Dion teamed up with the NDP to form a coalition that threatened to topple the Conservatives.

"I think the change is desirable, even though I believe (Ignatieff) will be a more formidable opponent," he said. "I think that's a good thing for the country."

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