Canadian Prime Minister Stephen Harper said his government could run a deficit of as much as €17.5 next year to fund a stimulus package aimed at kick-starting the weakening economy.
The deficit spending - the first in Canada in a dozen years - would include billions of dollars for infrastructure and public housing construction, tax breaks to fuel consumer spending and training for workers who lose their jobs, Mr Harper told the CTV television network in a year-end interview.
Mr Harper, whose Conservatives have long fought against increases in public spending, said the deficit would be short-term.
"What will be more realistic, in terms of the kind of stimulus our economy will need, is going to be in the €11.6 to €17.4 billion range," he said. "These are the policies we must adopt under these circumstances."
Mr Harper made the remarks three weeks after delivering a fiscal update that his political opponents sharply criticized for being overly rosy in its outlook for the economy, which has fallen into recession along with many others around the world.
Anger over the update prompted opposition parties to form a coalition that came close to toppling the minority Conservative government in a confidence vote.
The Conservatives have since said they are willing to work with the other parties to develop the next budget, which is due on January 27.
In the CTV interview, Mr Harper said his plan will include aid for the aerospace, mining and forestry industries, which have been hit hard in by the slowing economy and credit crunch.
The federal government and that of the province of Ontario have already agreed to provide billions of dollars in aid to the Canadian subsidiaries of Detroit's Big Three automakers as soon as Washington finalizes a bailout plan.
"Where I want to use taxpayer's money - to the extent I can - is to help ordinary people and help communities," Mr Harper said.
He added that he would have no choice but to seek another election if the opposition Liberal, New Democrat and Bloc Quebecois parties vote down the budget in January and bring down the government.
In the political crisis this month, the coalition had aimed to simply form the government after winning a confidence vote.
But the opposition parties did not get the chance after Mr Harper convinced the governor general - who represents the formal head of state, Queen Elizabeth - to suspend Parliament.