One day ahead of the release of the 2009 federal budget, the Conservative government has pledged that it will “protect our economy from immediate threat, while making investments to promote long term growth.”

In the throne speech read by Governor General Michaelle Jean on Monday, the government acknowledged that the economy has weakened since the October election, and has further weakened since Parliament last met.

“The nations of the world are grappling with challenges that Canada can address but not avoid,” Jean said. “The government’s agenda and the priorities of Parliament must adapt in response to the deepening crisis.”

The speech included a preview of the economic stimulus package to be included in Tuesday’s budget. In particular, the speech indicated that the budget would include stimulus through both direct government action and by encouraging private expenditure. It will include new investment in infrastructure, action to protect the stability of the financial system and measures to ensure access to credit for businesses and consumers.

In addition, the government pledged support for such struggling Canadian industries as forestry, manufacturing, automotive, tourism and agriculture, protection for the families and communities who depend on those jobs.

Lastly, Jean said the budget would include measures to protect the vulnerable: the unemployed, lower-income Canadians, seniors, Aboriginal Canadians and others hit hardest by the global economic recession.

“These actions will protect the jobs of today while readying our economy to create the jobs of tomorrow,” Jean said.

The government acknowledged that Canadians face difficult times in the year ahead, and potentially in the several years that follow.

“Our government will spend what is necessary to stimulate the economy, and invest what is necessary to protect our future prosperity,” Jean said.

However, the stimulus measures will avoid a return to permanent deficits, according to the speech.

IE