TORONTO — Gerard Kennedy says Liberal candidates are gearing up for a federal election that he anticipates will come shortly after the Conservatives deliver their budget.

The former Liberal leadership candidate officially announced today his bid to run federally in the same Toronto riding he represented provincially for 10 years.

Kennedy says he also considered running in Alberta or Manitoba, but he ultimately decided to run in the area where he feels the strongest connection.

He acknowledged his bid for the nomination in Parkdale-High Park was aided by former Liberal MP Sarmite Bulte, who held the riding before losing to Peggy Nash of the NDP in last winter's election.

Party insiders say Bulte agreed to step aside for Kennedy, believing he has the best chance of winning the riding back for the party.

Kennedy says he thinks Prime Minister Stephen Harper and Quebec Premier Jean Charest will call elections within weeks of each other.

"It looks like a certain scenario - a fairly cynical one, in my view - where Harper unleashes a budget that is favourable for Mr. Charest's intentions in Quebec and then hopes to parlay that into ... an election advantage," he said.

"This election we see now is probably fairly imminent, and I have to say Parkdale-High Park is the area ... where I think I can do the most good in terms of what I believe has to happen to the country."

Kennedy wouldn't comment on what Nash has done for the riding, but said the NDP can't be trusted to work for the community based on their apparent alliance with the Conservatives.

"A lot of what I've seen and experienced in the time I've been focused in the federal realm is ... the Conservatives and the NDP working together, and I think that's very unfortunate. I don't think the public interest gets served that way."