Sajid Javid has pledged to invest billions more in infrastructure and public services - despite criticising Labour for doing just that.
The Chancellor - a multi-millionaire former Goldman Sachs banker - said he would increase borrowing as he fired the starting gun on a spending arms race ahead of the election.
He claimed that the UK economy would thrive under Boris Johnson's Brexit deal - despite the fact the Treasury's own forecasts predict the exact opposite.
But he warned in a speech in Manchester that the election would be close between Labour and the Conservatives and that the party could not "take anything for granted".
Mr Javid announced three new fiscal rules to "control borrowing, to control debt, and to control debt interest" to spend more on hospitals and transport.
Mr Javid claimed that if the UK could stick to its new fiscal rules the Government could afford tax cuts - but not yet.
Mr Johnson was criticised earlier this year for promising to cut taxes for the richest - around 3m higher earners - by raising the 40p threshold from £50,000 to £80,000 if he became PM.
In his speech, Mr Javid said: "I'm announcing new fiscal rules that if elected will allow us to take advantage of the opportunity to invest in our future and our public services but without squandering the hard work of the British people.
"Like anyone who budgets, whether it's a household or small business or large business, I know that we must keep track of what we're spending, and what we bring in."
The Tories' decision to dump their fiscal rules mean that underlying debt will no longer fall as a percentage of GDP, balancing the books is out of the window and borrowing limits of 2% GDP in 2020-21 will be breached.
It came as the UK's independent fiscal watchdog was ordered to cancel its updated outlook on the public finances, due on Thursday, after the Government decided it would break election rules.
The decision means the snap election will now take place without any new forecasts from the Office for Budget Responsibility (OBR) and with out-of-date March forecasts on the state of the public purse.
