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Federal election a possibility

The Stephen Harper Conservative government says it will produce a budget on March 22 with no new major spending initiatives, but has hinted it may extend some benefits to seniors and workers.

The Stephen Harper Conservative government says it will produce a budget on March 22 with no new major spending initiatives, but has hinted it may extend some benefits to seniors and workers.

Whether the benefits will be enough to placate the NDP, the only party that has not already said it will reject the budget, is not clear.

The minority Conservative government would fall on a confidence motion on the budget, if the NDP vote against it. The Liberals and the Bloc have already indicated they are going to vote against the budget.

If the budget falls, it would force a spring election.

"The prime minister, and everyone, has said it over and over again -- and I certainly join them -- that our government doesn't want an election," Cariboo-Prince George Conservative MP Dick Harris said Wednesday.

"We are here to govern. Our focus is on the economy and jobs, and that's where we'll stay. The budget will be our next phase of our economic action plan," said Harris.

The Conservatives have said for some time they are turning the tap off on new stimulus spending - implemented two years ago to mitigate the impact of a global recession.

The Conservatives rolled out a multi-billion dollar spending plan in 2009 and 2010 meant to stimulate the economy, which included projects in Northern British Columbia like the $28-million Boundary Road connector.

It pushed Canada into a record deficit in 2009 at $55.6 billion. That is forecast to be reduced to $45.4 billion in the fiscal year ending March 31.

The Conservatives plan to balance the budget by 2015.

However, Finance Minister Jim Flaherty has said he's considering increasing support to seniors under the Guaranteed Income Supplement, as well as extending support for older workers and those in work-share programs. The worker programs provided benefits in Northern B.C. during the recession. "You can bet Mr. Flaherty has always had the seniors in mind, and every budget you try to do something," offered Harris.

The New Democrats have laid out a list of demands that also include removing the harmonized sales tax from home heating, reinstating a home eco-retrofit program and training more nurses and doctors.

The package would cost about $1 billion -- $600 million to $700 million for the increased senior's support.

The costs could be offset by removing a special tax credit for oil sands projects, said Skeena-Bulkley Valley NDP MP Nathan Cullen, whose vast Northern B.C. riding stretches east to Fort St. James.

The NDP have said that it's up to Harper to avoid an election, calling their requests reasonable.

Cullen argued a minority government doesn't get to have everything its way.

"We're serious about these things. This is not positioning, it's not an electoral stance," he said.

"It's things we believe would be good for the economy and the country. If the government disagrees that's their choice, but it's not going to be for us to put some things up on the window, and then take them down for convenience sake."

The Liberals are demanding the Tories roll back about $3 billion in corporate tax cuts that went into effect in January, and cancel next year's equally large reduction.

The Conservatives had said they will not do that.

With Canadian Press.