Jim Wallace: "Crackling with ambition"

The party said that it wants to increase spending now in order to save money in the longer term.

The Lib Dem manifesto for the 1 May poll, entitled Make the Difference, contains plans for three "spend to save" initiatives.

The party intends to invest �20m a year in each of the new funds, spending more on health promotion, projects to divert youths away from crime and energy conservation measures in the public sector.

Tax powers

The party would dip into the Scottish Executive's emergency cash to pay for the measures.

However, it argues that the moves would save the taxpayer money in the long term.

But leader Jim Wallace also came under attack after refusing to rule out raising income tax if Westminster did not give Holyrood enough cash.

Mr Wallace said: "We would not use the full three pence. We've only ever said one penny, there's never been any policy in the party to go more than one penny, but I don't believe we would use it at all."

On crime an extra 300 police officers would be recruited, with �20m a year ploughed into a fund specifically to target youth crime.

Recycling targets would be raised

A similar fund would also be established to install solar power and other energy conservation measures throughout the public sector.

A quarter of household waste would be recycled by 2006 under the Lib Dems and the party wants to see that figure rise to 55% by 2020.

Health plans include free eye and dental checks for all and the party said that 2,000 extra nurses and 300 more consultant doctors would be recruited to help cut waiting times.

Elsewhere the Lib Dems refused to rule out using the parliament's tax-raising powers.

Mr Wallace said: "This manifesto crackles with the Liberal Democrats' ambitions for Scotland.

"The Liberal Democrats are ambitious to make the difference for Scotland's people and communities.

"Over the next four years the Scottish Liberal Democrats will make the difference for a generation."

Eco-friendly industries

The manifesto also outlines plans to promote enterprise education in all schools and re-affirms the party's opposition to university top-up fees.

It also puts forward plans to create up to 5,000 jobs from new eco-friendly industries.

These include greater use of wave, tidal and solar energy and the manufacturing of products from waste.

In education, the current system of tests for five to 14-year-olds would be abolished, while the school entry age would be raised to six.

Lib Dems unveiled projects to divert youths away from crime

The party has also pledged to build and renovate hundreds of new schools to the highest environmental standards, while pupils would also be allowed to study vocational college courses from the age of 14.

The Skye Bridge tolls would also be abolished and the party also pledged to begin the Borders railway line, create a new Highlands and Islands air network and introduce measures to get freight off roads.

In fishing, the Lib Dems give their support to a new EU common fisheries policy and vow to press for greater regional control of fishing grounds.

The party re-iterated its support for proportional representation (PR) in local council elections.