Canadians shouldn't expect any significant tax cuts or new spending in next spring's budget, Finance Minister Jim Flaherty said Tuesday.

In an interview with Canadian Press, he said Ottawa has ruled that out, given a budget deficit projected to reach $56 billion this year.

Finance Minister Jim Flaherty expects moderate economic growth in 2010. (Jim Ross/Canadian Press)

"I would not anticipate any new substantial spending programs or any new substantial tax reductions in the next budget. This is a stay-the-course budget," he said.

But Flaherty also ruled out tax increases or spending cuts — at least for now — to bring down the deficit.

Barring a shocking development, the finance minister also said he believes the Canadian economy has stabilized and will grow moderately next year.

"I'm not pessimistic," he said. "Last year at this time was a very uncertain time ... things were grim and getting grimmer. A year later I feel there is stability. We still have to see the evidence of true growth but there is stability now, the unemployment numbers have stabilized, we're in a better place."

Flaherty said he is seeing enough evidence that the economy has weathered the recession that he is sticking with his plan to end the $46.6-billion stimulus program as planned in the spring of 2011, even though he believes some of that money for infrastructure and other projects will never be spent.

With files from The Canadian Press