Canada's premiers have asked the prime minister to find ways to prevent a potential deficit that would not harm the provinces and territories.
Ontario Premier Dalton McGuinty said he doesn't want the federal government to balance its future budgets by downloading expenses.
"I hope that collectively we'll be able to suggest to the prime minister that he... not pursue through some ideological slavishness a balanced budget agenda that at the same time has a real impact hurting Canadians," McGuinty told reporters.
"I think the first principle again has to be: do no harm."
McGuinty also said Ottawa shouldn't pull back funding for health care and education in favour of preventing a deficit.
"Infrastructure projects are important to us, continuing to fund health care and post-secondary education, those are important to us," he said.
"I think the first thing we need to do together is ensure that any policies we might deploy don't further harm Canadians and Ontarians."
McGuinty is considering whether his own province could run a temporary deficit as a way to avoid cutting major services, although he conceded it might be politically unwise.
"You don't have a lot of choices," he said.
"I'm not sure I've heard an economist lately -- and these are economists, not politicians -- who are saying they are adamantly opposed to running a temporary, cyclical deficit."
But B.C. Premier Gordon Campbell said the federal government should not try the same option, and said the country could emerge from any economic troubles by doing everything possible to cut costs and reduce unnecessary spending.
"It takes no time at all to get into a deficit but it takes a generation to get out," Campbell told CTV's Mike Duffy Live after the meeting.
"We've just spent a generation getting out of the deficit hole that was dug. We've finally filled that hole up, and it seems to me it's time to build on that foundation so we have a stronger future. That means we have to be more productive, encourage investments, and take unnecessary costs out of the system."
Quebec Premier Jean Charest said he does not "anticipate running a deficit" in his province, and urged the other leaders to work closely with Ottawa to tackle Canada's economic slowdown.
"We certainly agree that we need to coordinate our efforts and work together as we face this economic period of turbulence," he said.
All of the provincial and territorial leaders agreed they needed a federal-provincial meeting with the prime minister to discuss the economy.
Prime Minister Stephen Harper has said he wants to meet with the premiers, but has yet to announce a firm date.
Charest said that until the meeting is held, provinces should do what they can to strengthen their economies. He said he would invest in skills development in Quebec, and boost infrastructure spending where possible.
"There are a number of things we can do without waiting for a meeting, frankly," he said.
Charest also told reporters the leaders need time to prepare for the meeting, to ensure it results in effective decisions.
"I said to Mr. Harper that I am going to seek from my colleagues a commitment to work with the federal government to prepare a federal-provincial meeting that is substantive," he said.
"This has to be a meeting where there is a lot of prior work that is done in advance so we are able to sit down in front of a menu of options and proposals that will allow us to put forward policies to deal with this economic slowdown."
On CTV's Question Period Sunday, Finance Minister Jim Flaherty said Canada is on track "for a modest fiscal surplus this year" but he would not say whether the country is immune from future deficits.
With files from The Canadian Press
