Prime Minister Stephen Harper said his government will rack up a deficit of up to $30 billion during the next fiscal year in order to jolt the country's struggling economy back to life.

The spending is a stunning policy shift for Harper, who has railed against deficits in the past, and would mark the country's first deficit since 1996.

But Harper said the spending is necessary to insulate Canadians from the deteriorating economic climate, and he stressed that the deficit would only exist in the short-term.

"What will be more realistic in terms of the kind of stimulus our economy will need, is going to be in the $20 to $30 billion range," he said. "These are the policies we must adopt under these circumstances."

Harper made the comments during CTV's year-end interview, which was conducted in Ottawa with Lloyd Robertson and Ottawa Bureau Chief Robert Fife. The full interview -- "Conversation with the Prime Minister" -- can be seen on CTV this Saturday at 7 p.m. local time and on CTV.ca immediately after. (It will also be repeated Sunday, check local listings for broadcast time.)

The billons of dollars in stimulus spending will come as a part of the Tory's long-awaited budget, which will be tabled in the House of Commons on Jan. 27.

According to Harper, key measures in the budget will include:

• More than $6 billion for infrastructure, which doubles the previous year's spending
• Major funding for public housing and for home renovations, which is intended to stimulate the construction industry
• Tax breaks so consumers will spend more money
• Billions of dollars for the Employment Insurance program

Harper added the government will also bolster training programs so unemployed workers can retool their skills and find jobs in different sectors.

The Conservatives also plan to pump money into sectors like aerospace, mining and the forestry industry, which has been battered by falling global demand for products like newsprint.

"Where I want to use taxpayer's money - to the extent I can - is to help ordinary people and help communities," said Harper.

As for the ailing North American auto industry, Harper has previously announced that restructuring loans worth about $3.3 billion would be extended to the Detroit automakers.

However, those funds will only flow if U.S. lawmakers approve a similar package, worth about $14 billion, south of the border.

"We either do our share of the restructuring, or we will have no share of that industry in Canada," said Harper, who added that he's asked the Liberals for input in drawing up the budget.

The call for non-partisan co-operation is another sharp shift for Harper, who faced-off against opposition parties earlier this month in a bare-knuckled constitutional battle which resulted in an extended parliamentary time out.

The political showdown was spurred when the Tories tabled their fall fiscal update, which threatened to revoke public funding for political parties. The opposition parties had also complained the fiscal update contained no stimulus for Canada's economy.

Meanwhile, Harper's more conciliatory tone could unravel a Liberal-NDP coalition which has promised to topple the government and rule the country with the support of the Bloc Quebecois.

However, if the coalition insists on defeating the Tories in Parliament by voting down the budget, Harper said he won't give up fighting and would run in another election.

"I will have no choice but to ask for an election. Canadians elected our government. They were very clear about that. They gave us a strengthened mandate."