OTTAWA - NDP Leader Jack Layton is calling on the other federal parties to put aside their differences and focus on practical measures everyone can agree on.

In a Friday speech to his caucus and party strategists, Layton urged the Liberals and the Conservatives to devote the upcoming session of Parliament to improving health care and boosting retirement income.

"To Mr. Harper and Mr. Ignatieff, I say: We have our differences. We have different visions for this country we share. But we also have an opportunity to get something done, starting Monday," Layton said in a text of his remarks provided in advance.

"With a little co-operation in the House, we can take responsible steps forward."

But Layton says he won't hesitate to pull the plug on Parliament and dive into an election if the other parties play political games with the agenda.

"Don't get me wrong," he said. "We'll reject a bad budget. We'll fight an election over it. But until then, we have a job to do for Canadians."

Although some analysts predict that the NDP faces one of its toughest election battles ever, Layton says his party is well-financed and well-organized.

"We're ready for an election and I need each of you to stay ready -- to fine-tune our preparations."

The Commons returns on Monday in advance of a spring budget that could spawn a federal election if the opposition parties vote against it.

The Liberals have suggested they can't support a budget that does not repeal planned cuts to corporate tax rates.

The Bloc Quebecois has said it won't support a budget that does not include $2.2 billion in compensation for implementing a harmonized sales tax in Quebec. Recently, the Bloc upped its price tag to $5 billion.

Layton has avoided laying out a list of definite demands, leaving room for negotiation if the Tories want to avoid going to the polls.