OTTAWA (Reuters) — Canada vowed yesterday to eliminate total government net debt in less than a generation, as it speeds up the reduction of the federal debt as a percentage of gross domestic product.In an economic and fiscal update, the minority Conservative government also said it would apply any unanticipated budget surpluses to debt reduction, and would lower taxes on savings, capital gains and personal income.

“We want to lift that heavy weight off the shoulders of the next generation of Canadians,” Finance Minister Jim Flaherty told Parliament’s finance committee.

He promised to eliminate government net debt in “less than a generation” and keep the rate of programme spending below the rate of economic growth.

Ottawa said it would continue to plan for an annual debt reduction of C$3 billion ($2.6 billion) and would use unanticipated surpluses to speed up cuts in debts and income taxes.