The Conservative government expects that it will be defeated over the budget in early March, which means Canadians could go to the polls by early April.
The government has apparently intensified its election readiness, believing it may fall during a non-confidence vote on March 4, the day of the Liberal amendment to the Tory budget. That could set an election date for as early as April 7.
Sources told CTV News that Liberal Leader Stephane Dion has told party members he is ready to pull the election trigger over the budget bill, even though some Liberals are against the idea.
"All the senior people, including the people who run the campaign ... they don't want an election right now. They do not want an election because they do not believe the party is ready to go into an election," Ottawa Bureau Chief Robert Fife told CTV Newsnet's Mike Duffy Live.
He said that the Conservatives have reacted by getting their election headquarters "up and running. They're getting their planes booked. The campaign workers have been told to get ready for an election campaign."
Fife noted, however, that the divisions over calling an election call run deep in the Liberal Party. He said senior Liberals such as Ralph Goodale, Michael Ignatieff, and Bob Rae don't want an election right now.
"One senior member of parliament said to me, either we're going to get (Dion) to change his mind or maybe we're going to have to push him off the ledge," Fife said.
On Thursday, Dion wouldn't say if he has made up his mind about forcing an election.
"I want to say to the Canadian people -- I always say the same in public and in private -- two things,'' Dion said.
"The first thing is that we will choose our time. The second thing is that we need to be ready at any time."
There are reports that Dion wants to hold a private meeting with his caucus once the budget is tabled later this month.
With files from The Canadian Press
