Finance Minister Jim Flaherty said there will be US$9.8 million for infrastructure over the next two years. Mr Flaherty is predicting a deficit in Canada for the first time in more than a decade.

New Liberal Party leader Michael Ignatieff said he'll announce on Wednesday whether he'll support the budget. The opposition Liberals had vowed to use a parliamentary confidence vote to topple Prime Minister Stephen Harper's minority government if the package fell short.

'There are some positive signs to this budget,' mr Ignatieff said.

'There's some things that we are concerned about. There's a negative side.' He did not elaborate.

The credit crisis and the global sell-off of commodities have started to hit Canada hard. The country lost more than 100,000 jobs in the last two months of 2008, and the central bank has predicted that economic output will contract 4.8 percent in the first quarter.

Mr Flaherty called the crisis 'the challenge of our time'.

'Canadians are feeling the effects of the global recession, and they are concerned,' Mr Flaherty said.

The government is spending US$24 billion this year as part of the plan. Government officials said that was equivalent to 1.9 per cent of Canada's economic output.

The government is providing money for bridges and highways, high-speed Internet networks and winterising homes. The government also lengthened the amount of time unemployed people will be able to collect insurance if they are laid off. -- AP