OTTAWA (AP) – Canada’s main opposition party backed away from plans to topple the Conservative government, saying Wednesday the prime minister would remain “on probation” if he agrees to give periodic economic status reports in Parliament.

The opposition Liberals had vowed to use a parliamentary confidence vote to take down Prime Minister Stephen Harper’s minority government if Harper’s proposed stimulus plan fell short.

But Liberal Leader Michael Ignatieff said he would support Harper’s $32 billion plan if it also requires reports to Parliament.

“We are putting this government on probation,” Ignatieff said. “Should Mr. Harper fail to satisfy the expectations of Canadians we will be ready to defeat him.”

There was no immediate response from the prime minister’s office. But Conservative House of Commons leader Jay Hill said the government has no problem with making reports to Parliament.

Finance Minister Jim Flaherty said earlier Wednesday the government is open to making some changes.

“If there are useful suggestions from opposition parties, of course we will look at them. That’s normal in a time of serious economic recession,” Flaherty, a Conservative, told CBC television. “I would certainly not look at changing the focus of the document.”

Ignatieff’s amendment would give the Liberals a chance to revisit their decision to pass the budget three times over the coming year.

The Liberals want fiscal updates by Mar. 26, June 23 and Dec. 10, along with detailed reports showing how the budget is being implemented.

The credit crisis and the global sell-off of commodities have started to hit Canada hard. The country lost more than 100,000 jobs in the last two months of 2008, and the central bank is predicting economic output will contract 4.8 percent in the first quarter. The government is predicting a deficit in Canada for the first time in more than a decade.

Flaherty called the crisis “the challenge of our time” and said he is prepared to provide more stimulus if necessary.

In its initial offering, the government is pledging income tax cuts and $9.8 billion for infrastructure. There is money for bridges and highways, high-speed Internet networks and a 12-month tax rebate for home renovations.

The government also lengthened the amount of time unemployed people will be able to collect insurance if they are laid off to 50 weeks from 45 weeks.

The stimulus plan also provides government credit support for automobile leasing, and funds for job retraining programs, the aboriginal population and struggling industries such as the auto sector and forestry.

The opposition parties, which hold a majority in Parliament, united against Harper late last year after he announced a plan to scrap government subsidies for political parties, which the opposition groups rely on far more than the Conservatives to pay for campaigns and staff salaries.

Although Harper withdrew the proposal, the opposition continued to seek his ouster, arguing he had no economic stimulus plan to protect Canada from the global financial crisis.

Harper only avoided defeat last month by shutting down Parliament – an unprecedented tactic that allowed him to retain power for now.

The opposition New Democrats and Bloc Quebecois parties said Tuesday they won’t support Harper’s budget so the survival of Harper’s government is dependent on the support of the Liberals.

By signaling he’ll support the budget, Ignatieff has backed away from an agreement to form a coalition government with the other parties. The idea of a coalition involving the socialist New Democrats and separatist Bloc Quebecois is not popular in Canada.

New Democrat Leader Jack Layton suggested the agreement signed between the Liberals and the New Democrats last month is dead.

“We have a new coalition, Mr. Ignatieff and Mr. Harper,” Layton said.

Layton, however, said the coalition between the New Democrats and the Liberals could continue if the budget fails to pass. Governor-General Michaelle Jean will then have to decide whether to give the opposition parties a chance to form a coalition government or call Canada’s second election in less than four months.

Jean holds a largely ceremonial role as a representative of Britain’s Queen Elizabeth II, who is the head of state. Jean allowed Harper to shut down Parliament last month.