The Liberals tabled plans Monday to restore fiscal balance in Ottawa, after the Tories revealed last week that the country's record deficit is nearly $2 billion larger than previously thought.

Three senior Liberal MPs were to deliver simultaneous speeches Monday in Ottawa, Toronto and Montreal to outline key parts of the party's economic platform.

Deputy leader Ralph Goodale, finance critic Scott Brison and industry critic Marc Garneau say their party will not introduce any new spending measures that would increase the deficit.

Liberals will also commit to a deficit-to-GDP target of 1 per cent within two years of taking office, they say. The Liberals say that rate would decline until the deficit is eliminated.

The party is also banking on their previous record of deficit cutting in the 1990s, saying they will re-establish the "prudence" fund set-up by former finance minister Paul Martin.

The speeches are low on specifics on where they will reduce the budget shortfall, but the Liberals differ from the Conservatives by planning to halt corporate tax cuts until the budget is balanced.

Last week, Finance Minister Jim Flaherty announced the largest deficit in Canadian history at $55.6 billion, up from the $53.8 billion forecasted in his March budget.

Flaherty said his government can balance the budget in five years.

The Finance Department said last year's record deficit was partially due to a one-time payment of $5.6 billion to Ontario and British Columbia to implement a harmonized sales tax this year.

Goodale said in an interview to The Canadian Press that the government was legally entitled to give the provinces the money but said the Conservatives have been manipulating the budget by moving some expenditures from one fiscal year to another.

"The one consistent fact about Flaherty's projections is that they've always been wrong," Goodale said.

Since Parliament returned in September, Liberal Leader Michael Ignatieff has focused on economic issues during question period.

Family-focused initiatives, such as proposing to build a $1 billion family-care plan, have been central to the Liberals' message.

"The issue boils down to choices -- how do you get to a desired outcome," Goodale said on CTV's Power Play. "Instead of the corporate tax cuts the priority should be on families as well as skillfully managing the deficit."

During question period, Liberal MP Martha Hall Findlay called the Tories the "biggest borrowing, biggest spending government in Canadian history.

"It's done so for four years running and it started before the recession," she charged during question period.

Flaherty responded by defending the Canadian economy and said it's "looked on in envy" by the world.

"We have the lowest deficit in the G7 and the best overall fiscal record in the G7," Flaherty replied to Findlay. "Here's what (the Liberals) would do . . . they would raise taxes and kill about 400,000 jobs in Canada."

Ted Menzies, Flaherty's parliamentary secretary, defended the pending corporate tax cuts. Although Canada's corporate tax rates are among the lowest of the G7 countries, he said the rates need to be reduced further so that corporations with a presence in Canada can remain competitive in a globalized economy.

The Conservatives have also charged that the Liberals have not explained how they would pay for some of their campaign promises, such as their proposed $1 billion family-care plan.

The NDP has also criticized the Tories' economic plan. New Democrat MP Thomas Mulcair described it as an "across the board approach" to tax cutting.

"We have to target those areas that create the best jobs, that create the most jobs and increase productivity. That will be good for the economy," he said.

Both the Liberals and the Conservatives have begun making more campaign-style announcements, adding to election speculation.

With files from The Canadian Press