OTTAWA - Finance Minister Jim Flaherty will use Thursday's economic update to spread the pain of the economic downturn to politicians and top bureaucrats.

A senior government official told The Canadian Press that the update will contain some high-profile measures to control discretionary spending.

The source wouldn't confirm details, but there will likely be compensation restrictions for senior public servants and MPs.

Last week's throne speech warned that the government intends to restrict the growth of compensation in the public service, but this is the first time politicians have been mentioned in the belt-tightening move.

The measures come as the government prepares for the worst economic climate since the early 1990s and likely the first budget deficit in more than a dozen years.