The federal Conservative government plans to introduce three new measures in the coming weeks aimed at boosting the country’s economy and stoke job creation, House Leader John Baird said Thursday as political parties began drawing battle lines on the economic debate once Parliament resumes Monday.

"At a time when our economic growth is still uncertain, our government is focused on jobs, security and prosperity for Canadian families and communities,” Mr. Baird said at a Thursday morning media conference in Ottawa.

However, Mr. Baird said the government had no plans to extend the present stimulus-spending plan, which expires on March 31 next year, or roll out a secondary scheme, citing the need to balance the budget.

To lead Canada down the road to prosperity, he added, the government will keep taxes low and exercise fiscal restraint.

Meanwhile, NDP Leader Jack Layton said his party would be pushing for additional government spending when the House of Commons returns on Monday. He said the NDP agrees with U.S. President Barack Obama, as opposed to Prime Minister Stephen Harper, in terms of what the economy requires.

Mr. Layton charged the Conservatives’ economic plan was following “some rigid ideology,” as opposed to dealing with the reality of relatively high unemployment.

“Continuing stimulus is very important,” Mr. Layton said. “How can you create jobs when are turning off the stimulation of the economy?”

Mr. Layton’s push echoes comments from earlier this week from Liberal Leader Michael Ignatieff, who said in a broadcast interview that Mr. Harper might be premature in cutting off stimulus early next year. Plus, he said Canadians have told him during his summer bus tour that the economy is not as robust as Mr. Harper suggests.

“We don't know what’s going to happen to the economy in 2011. What Mr. Harper is saying is turn the tap off in March 2011,” Mr. Ignatieff said. “Just turn it off. And I'm saying, ‘Wait a minute, how do you know where we're going to be in 2011?’

Mr. Harper is telling “Canadians the recession's over, back to work, everything's fine, and Canadians out there are saying to me, ‘Actually, it's not fine.’”

The Liberal Party will fight against further reductions in corporate tax rates -- which are scheduled to drop from the present 18% level to 15% by 2012 -- as it argues business rates are already competitive. Plus, it intends to target spending measures the Conservative government has in the works, including billions on new military jets and prisons. Those measures, Liberals claim, do little to help the middle class.

John McCallum, the Liberal infrastructure critic, also warned Thursday municipalities could be stuck with footing the bill for “millions” to finish infrastructure projects not completed by Ottawa’s March 31 deadline.

Money from the federal government’s infrastructure-stimulus plan stipulated money would only be available to municipalities and provinces on the condition that projects are completed before April 1 of next year. But Mr. McCallum said projects have been delayed due to adverse weather and federal government “dithering,” and as a result Ottawa needs to show flexibility on the March 31 deadline.

Pressure for additional stimulus from the federal government comes amid a slowdown in the global economic recovery, led by renewed weakness in key U.S. indicators. However, the Bank of Canada recently raised its key benchmark interest rate, to 1%, suggesting the recovery is proceeding, although at a slower pace, and that financial conditions remain “extremely stimulative.”

Economists at Toronto-Dominion Bank, in a forecast released Thursday, said the Canadian economy does face significant headwinds, among them a weaker outlook in the U.S., a downswing in Canadian housing, an increasingly indebted Canadian consumer, and the waning of benefits from past monetary and fiscal stimulus measures.

The TD forecast envisages 3% growth this year but a meagre 2% advance for 2011, followed by 2.8% growth in 2012.

However, the TD report highlighted the better-than-expected fiscal situation in Ottawa and some of the provinces. “Canada faces a lesser near-term need for radical fiscal austerity, helping to limit its economic undertow.”