The Canadian federal budget for the 2009–10 fiscal year was presented to the House of Commons of Canada by Finance Minister Jim Flaherty on January 27, 2009. The federal budget included $20 billion in personal income tax cuts as well as major investments in infrastructure.

The Budget Implementation Act, 2009 was introduced in the House of Commons on February 6, 2009, and it received royal assent on March 12, 2009, enacting the legislative changes necessary to implement the budget. It was announced as the "Budget 2009: Economic Action Plan", with accompanying publicity.

The NDP and the Bloc announced shortly following the presentation of the budget that they would not support it in its initial form, but the budget was passed on February 3, 2009, with the support of the Liberals. All MPs for the NDP and the Bloc and the six Liberal members from Newfoundland and Labrador voted against the budget.

The government's Fall 2008 Economic and Fiscal Statement noted significant expected economic deterioration as a result of a global economic slowdown. Although the government did not forecast a deficit for the 2008–09 fiscal year, the Statement warned that any measures to deal with the economic slowdown would require deficit spending. Additionally, Finance Minister Jim Flaherty noted prior to tabling the Statement that a "technical" recession was possible. Despite pressure to quickly announce a stimulus package to offset deteriorating economic conditions, the Statement also proposed spending cuts of up to $2 billion on various programs, and the sale of various federal properties.

The opposition parties, who at the time held a majority of the seats in the House of Commons, criticized the lack of immediate economic stimulus, and threatened to defeat the government in a vote of non-confidence, leading the Governor General to subsequently prorogue Parliament from December 3, 2008, until January 26, 2009. As the federal budget is ordinarily tabled in early Spring, this action would not normally have had an impact on its timing. However, the deepening economic crisis forced the government to advance its plans. On December 20, 2008, the government announced it would spend approximately $30 billion in order to stimulate the economy while forecasting a deep deficit for a five-year period. Additionally, the tabling of the 2009 federal budget was moved up to January 27, 2009 - just one day after Parliament's return.

A $33.7 billion deficit for the 2009–10 fiscal was announced during the deposition of the budget on January 27, 2009, with a projected deficit of $29.7 billion for the following year as well as additional deficits until 2013 for a total of $85 billion over five years while Flaherty also announced a $1.1 billion deficit for the end of the 2008–09 financial year. It is the first deficit announced since the 1996–97 fiscal year. $12 billion was earmarked for various new infrastructure projects including roads, internet broadband access with additional funding for renovations on aging infrastructures as well as for green infrastructure projects. $8 billion was also announced for social housing renovation projects, $1.5 billion for job training, $2.7 billion for short-term loans for the auto industry as well as various income and corporate tax cuts and tax credits up to $20 billion for individuals and $2 billion for businesses. Among the tax measures included were a new home renovation tax credit of up to $1350, the extension of the EI benefits by five weeks for the next two years as well as the increase of the basic personal amount to $10,320 before any payment of federal income tax. The government estimated that the $40 billion in economic stimulus and other measures would create close to 200 000 jobs while it forecast a one percent growth of the economy over the next two years.

The Liberal Party, now headed by Michael Ignatieff who replaced Dion during the prorogation of the Parliament, supported the budget but also proposed in return an amendment, which passed 214–84. The amendment would force the government to present occasional reports on the progress and costs of the budget. Both the NDP and the Bloc Québécois opposed the budget. The Bloc cited the loss of transfer payments for the province while the NDP cited a lack of funding for the vulnerable and also criticized the infrastructure funding as well as pay-equity reforms introduced in November. Six Liberal MPs from Newfoundland and Labrador also expressed opposition to the budget citing that the province would lose up to $1.6 billion in transfer payments as it no longer collects equalization. Ignatieff permitted his members to vote against his party lines. The budget passed 211 to 91. Among popular opinion, a Strategic Council poll indicated that 62% of Canadians were in favour of the budget against 38% who were not in favour while Canadians were split on whether the government failed the economy in Canada.

Some of the key items in the Economic Action Plan budget were: