Flaherty told the Commons on Tuesday that the Budget 2008 provisions are "prudent, focused and responsible in this period of economic uncertainty," but warned that the Liberal-sponsored Private Member’s bill "risks plunging the federal government back into deficit".

"Our government told Canadians we would maintain a balanced budget and we intend to keep our word," Flaherty declared.

Under the Liberal proposal, currently known as Bill C-252, parents who save for their children's future education would be able to claim a tax deduction of up to CAD5,000 per year.

However, by linking the measure to quash the bill to the budget enabling motion, Flaherty risks bringing about a challenge to the power of the minority Conservative government, which controls less than half of the 308 seats in the Commons.

Also included in the Notice of Ways and Means Motion is the Government’s proposed Tax-Free Savings Account, described by the minister as "the single most important personal savings vehicle since the introduction of Registered Retirement Saving Plans in the 1950s".

"The Tax-Free Savings Account will provide Canadians with a powerful incentive to save," argued Minister Flaherty. "This flexible, registered, general purpose account will allow Canadians to watch their savings grow tax-free. It is the first account of its kind in Canadian history."

Other Budget 2008 proposed tax measures in the Notice include:

• Enhancing the flexibility of Registered Education Savings Plans by increasing by 10 years the time they may remain open and accept contributions, effective for the 2008 tax year.
• Increasing the residency component of the Northern Residents Deduction by 10%, effective for the 2008 tax year.
• Extending eligibility for the Medical Expense Tax Credit to certain devices, effective for the 2008 tax year.
• Extending the Mineral Exploration Tax Credit by one year.
• Extending the capital gains tax exemption for certain donations of listed securities to certain exchangeable shares and partnership interests, for donations made on or after February 26, 2008.
• Adjusting the rate of the Dividend Tax Credit to reflect corporate income tax reductions, beginning in 2010.
• Increasing the benefits available to small and medium-sized businesses under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008.
• Amending the penalty for failure to remit source deductions when due and excusing early remittances from the financial institution remittance rules, effective for remittances on or after February 26, 2008.
• Reducing the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008.
• Ensuring that the tax incentive for donations of medicines benefits recipients in developing countries to the greatest extent possible.
• Modifying the provincial component of the Specified Investment Flow-Through tax to better reflect actual provincial tax rates, generally effective for the 2009 tax year.
• Amending the Excise Act, the Excise Act 2001, and the Customs Tariff to improve tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and tobacco for duty-free markets, and equalizing the excise treatment of imitation spirits and other spirits.
• Implementing Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures proposed or referenced in the budget, such as: expanding the list of exemptions for basic health and education services; exempting all nursing services rendered within a nurse-patient relationship; ensuring a variety of professional health services maintain their GST/HST-exempt status; and relieving GST/HST on most lease payments for land on which wind and solar power equipment used to generate electricity is situated.

Flaherty stated that legislation to implement the remaining Budget 2008 tax proposals is being developed for introduction at a later time.