Liberal Leader Stephane Dion says the Tories have destroyed Canada's fiscal framework by spending the federal cupboard bare. And he asked in the Commons whether it was all part of a Conservative plan to cut government services.

But Government House Leader Peter Van Loan was all too ready to fire back, accusing the Liberals of planning a massive increase in gasoline taxes.

Finance Minister Jim Flaherty also responded to the accusations, pointing out that Canada is the envy of the G7 group of nations, with its continuing balanced budgets.

Flaherty says that puts Canada in a better position to weather an economic storm than any other industrialized country.