Gordon Brown has refused to comment on reports the government will cut VAT by 2.5% as part of an emergency package aimed at kick-starting the economy.
But the PM said "substantial" measures would be in the pre-Budget report on Monday to pump money into the economy.
And he denied increasing borrowing to fund tax cuts was a "gamble", saying it was "responsible and necessary".
Tory leader David Cameron has warned the government's plans will lead to a future "tax bombshell".
Mr Brown refused to speculate on the contents of Chancellor Alistair Darling's statement on Monday, but he said there was a consensus around the world that any "fiscal stimulus" had to be "substantial to have an impact".
Experts say the government will have to increase borrowing to record levels of £100bn or more, which the country will have to pay back later in higher taxes - and there is no guarantee tax cuts will get consumers spending again.
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