OTTAWA (Canada) - CANADA'S government will post 'large, short-term deficits' to stimulate an economy in recession, and is unlikely to be back in the black before 2014, a senior official said on Thursday.

The government will post a small surplus for the year ending March 31 in its budget to be unveiled on Tuesday, the senior aide to Prime Minister Stephen Harper said at a media briefing.

But new spending and lower government revenues will force Ottawa to post a $34 billion (S$40.4 billion) deficit in fiscal 2009-2010, and a $30 billion (S$35.9 billion) deficit the following year, the official said.

Canada's debt-to-gross domestic product ration meanwhile is forecast to rise from 23.4 per cent in 2007 to 28.0 per cent in 2010.

These deficits are 'predominantly attributable to a stimulus package', the official said, but also 'government revenues have declined as a result of the economic slowdown, both corporate and personal tax receipts'.

Canada is hoping by 2014, the global economy will have fully recovered, boosting Canadian exports and lifting the government's tax receipts.

Over the past decade, Canada was the only G7 nation to post back-to-back budget surpluses. -- AFP