The Canadian federal budget for the 2009–10 fiscal year was presented to the House of Commons of Canada by Finance Minister Jim Flaherty on January 27, 2009.
[6] Despite pressure to quickly announce a stimulus package to offset deteriorating economic conditions, the Statement also proposed spending cuts of up to $2 billion on various programs, and the sale of various federal properties.
[7] The opposition parties, who at the time held a majority of the seats in the House of Commons, criticized the lack of immediate economic stimulus,[8][9] and threatened to defeat the government in a vote of non-confidence, leading the Governor General to subsequently prorogue Parliament from December 3, 2008, until January 26, 2009.
[12] The government estimated that the $40 billion in economic stimulus and other measures would create close to 200 000 jobs while it forecast a one percent growth of the economy over the next two years.
[13] The Liberal Party, now headed by Michael Ignatieff who replaced Dion during the prorogation of the Parliament, supported the budget but also proposed in return an amendment, which passed 214–84.
[15] Six Liberal MPs from Newfoundland and Labrador also expressed opposition to the budget citing that the province would lose up to $1.6 billion in transfer payments as it no longer collects equalization.