TORONTO — The federal government's $13.2-billion budget surplus is further proof of a fiscal imbalance between Ottawa and the provinces, and Prime Minister Stephen Harper should use some of that extra money to treat Ontario more fairly, Premier Dalton McGuinty said Tuesday.

Finance Minister Jim Flaherty said the extra cash would be used to pay down the national debt when he announced the federal surplus on Monday.

But McGuinty said Tuesday that the federal Conservatives should look instead at using that extra money to repair the fiscal arrangements between the two levels of government.

"The amount of the surplus confirms what all the premiers have been saying ... that they've got more money than they've got responsibilities, whereas we've got more responsibilities than we have money,'' said McGuinty.

"As Prime Minister Harper considers what he's going to do with the surplus, my advice to him is: `Don't take your eye off the Ontario ball.'''

Ontario still gets less federal money per capita than other provinces for health care and education, and McGuinty said that unfairness must be addressed before Harper can fix the fiscal imbalance or update the $11-billion revenue-sharing equalization program.

"We've got one particular issue here in Ontario that cries out for reform,'' said McGuinty. "From an Ontario perspective, whether or not Prime Minister Harper is successful in addressing the fiscal imbalance will have everything to do with whether or not he addresses that inequity.''

McGuinty also said the federal Conservatives were enjoying the benefits of good fiscal management by the previous Liberal government.

Flaherty agreed that the surplus was largely accumulated during the Liberals' reign, he also said the Conservatives would change the budget process so Ottawa doesn't post huge surpluses each year.

The provincial premiers failed to come up with a common approach to the fiscal imbalance when they met in St. Johns, NL, last summer, so each province now has to negotiate its own deal with the federal government.

Many provinces also want Harper to enrich payments under the equalization program, but Ontario -- which does not qualify for equalization payments -- remains opposed, at least until the fiscal imbalance issue is addressed.     

McGuinty also said Tuesday he had not seen the Tories'  plans to eliminate more than $1 billion in federal spending, and didn't know how the cuts would affect the province.

But Ontario Tourism Minister Jim Bradley called the decision to cut a $79-million program that gave tourists rebates on the goods and services tax "ill-considered,'' and said he wanted Ottawa to reconsider axing the tax refunds.

"To have the federal government cancel a program that was popular right across Canada with tourists is surprising to me, and I think in the long-run damaging,'' said Bradley.

"I've been trying to get the federal minister to call together all (tourism) ministers in Canada to discuss the major challenge we have getting Americans to visit us, and one of the reasons was to avoid the kind of action the federal government just took.''