As we approach the post-deficit era, all parties are laying out their plans for managing the nation's finances.

The Liberals advocate a 50/50 solution that was first articulated during the last election. Backroom strategists decided that 50% of any surplus be allocated to new spending and the other 50% to a vague mix of tax cuts and debt reduction

However, things have dramatically changed. The Department of Finance reports a surplus of $1.4 billion for the first eight months of the 97/98 fiscal year. However, year-end adjustments may whittle this figure back to zero or a deficit situation. And polls show tax cuts and debt reduction as the top two choices of Canadians and new spending running a distant third.

In December, the federal Tories outlined their equilateral triangle approach to dispensation of the fiscal dividend. One-third to debt reduction, one-third to tax cuts and one-third to new spending.

And now, Reform has outlined their 50/50 plan. Half of the dividend to debt reduction and half to tax cuts. As for spending, money for new initiatives must come from existing budget envelopes through reallocation.

The Liberals are prepared to throw of any surplus toward new spending regardless of actual need. The Tories, in their usual fiscal identity crisis, want to be Liberals, but only less so. Advocating that one-third of surpluses be put toward new spending is only marginally less reckless than the Liberal plan. Only Reform seems to be acting responsibly as well as reading our press releases and reports.

Last fall, the CTF appeared before the House of Commons finance committee. Specifically we advocated that "the government's fiscal strategy must be built on three pillars: debt reduction, tax relief and redefining the role of government."

Contrary to the opinion of Southam Columnist Andrew Coyne, the debt crisis is not over. According to the OECD, Canada still has the second highest debt-to-GDP ratio at 70.3%, second only to Italy with a whopping 111.7%. And consider this, the most optimistic economic projections; assume 4.5% growth and 2% inflation for the next seven years. Such a scenario would yield massive surpluses. And even if we applied 100% of all these surpluses through to 2005 to debt reduction, we would still not qualify for entry into the European Union, which has set a maximum debt-to-GDP ratio of 60% as condition of entry into the union.

Reform advocates debt reduction legislation. Well, this has been a hallmark of our last two pre-budget submissions. And we go even further with our demands for a constitutional balanced budget amendment. While some reporters may think Reform is on to a new idea here, it is the CTF that has led the way in forcing governments to adopt tax and expenditure limits.

As for Reform's spending cuts to the CBC, gutting Canadian heritage, selling of crown corporation assets, eliminating regional subsidies and corporate welfare programs at Industry Canada, these were itemized in the CTF submission.

And it was the CTF who pointed out the folly of new spending. As noted in our October submission, "successive reports of the Auditor General have chronicled billions in waste and mismanagement." By refusing to address these problems, the Government shows its contempt for taxpayers and as such, has no right to spend a single penny of the fiscal dividend on new spending.

For other political parties that are interested in a taxpayer friendly agenda, please call us or visit our web site at www.taxpayer.com. We don't charge for common sense.