A political showdown between Canada's Conservative government and major opposition the Liberal Party will take place in mid-September, which may result in an election as early as mid-October.
The government has decided to put forward a confidence motion once the Parliament resumes on Sept. 14, which will lead to the collapse of the government if it fails to pass.
The budget ways-and-means motion, which will include legislation for housing renovation tax credit and other stimulus measures, will be put to a confidence vote in the Parliament, Prime Minister Stephen Harper announced on Wednesday.
Canada's government is required to bring such a motion each year when the Parliament resumes in fall, which is always a confidence vote for the government, meaning it has to step down if the vote does not pass.
Harper's announcement came after Liberal leader Michael Ignatieff said he would no longer support the government for the coming session of the Parliament on Tuesday. Ignatieff had planned to put forward a non-confidence motion on Oct. 1 to topple the government.
Observers say the Conservatives are pre-empting the Liberal attempt to have a better position. The government had put forward the popular tax break measure before the summer encouraging the public to spend money renovating their houses.