In what was billed as a mini-speech from the throne, Prime Minister Stephen Harper unveiled his key priorities Tuesday, promising tax cuts, a remedy to the so-called fiscal imbalance and Senate reform.

In the speech to the Canadian Club to mark his first anniversary as prime minister, Harper said his government will take "historic action" to reduce taxes, cut spending and pay down the national debt.

He promised a "tax-back guarantee" in law that would require the government, when paying down the nation debt, to use the interest savings to cut personal taxes.

Harper also pledged to eliminate some bureaucracy and reduce "useless regulations" to help stimulate competitiveness.

The prime minister also promised he would be "settling the fiscal imbalance."

"The budget will put fiscal relations between governments back on a principled basis by providing long-term predictable federal transfers and support," Harper said.

Harper said Canada will also take a more "assertive foreign policy" and play a stronger role in international affairs.

On Afghanistan, Harper said Canadian troops would continue to fight the Taliban, and he said he would be making a "significant announcement" about reconstruction efforts in the troubled region.

Harper also spoke of the need to pass the Senate elections bill "so Canadians will finally have a say in who represents them in the red chamber."

The bill, which falls short of allowing full Senate elections, calls for voters to choose preferred candidates to represent their provinces and territories.