Agenda item one for the Conservatives should be to cut spending. Item two should be to dedicate savings to debt reduction. Canada's debt currently stands at $472-billion. Since 1961, debt interest and service charges have cost taxpayers almost $1-trillion. Canadians would welcome a plan to pay off the debt. It can be achieved if Parliament passes a debt repayment law with annual payments of 5 per cent of total revenues. Each year, Ottawa squanders $34-billion paying interest. As the debt is reduced, significant savings will be realized through lower interest payments.
The third policy item is to cut income taxes, since Finance Minister Jim Flaherty is not taxing to collect money to fund programs, but rather finding ways to spend money government collects. Two years ago the federal surplus totaled $13.2-billion. Last year it was $9.2-billion. The spending of surplus dollars is responsible for Ottawa's 14% expansion.
The only real problem with legislated debt repayment is the same one experienced by the likes of Ontario and the "Taxpayer Protection and Balanced Budget Act."
Let's all remember Ontario did not post a balanced budget with that legislation in place .
It is far better for the government to make debt reduction and spending reduction goals like "Reduce Canada's debt by XX billion over the next 5 years." That's measurable. "Reduce spending by 10 %" that would be another.
However my guess is that for the current Conservative government none of those schemes seem like electoral beating sticks.