TORONTO - The NDP is calling for part of the federal gas tax to be set aside for public transit.

Leader Jack Layton told reporters today in Montreal that chronic under-funding of mass transit in Canada could be solved by the NDP's plan. The party's proposal would see one cent per litre of the current federal tax on gasoline reserved for municipal spending on buses, trains and subways.

Layton says that would mean an additional $400-500 million per year for Canadian municipalities.

He says he would like to see the proposal included in next month's federal budget.

A similar transit policy was instituted by the Liberal government of Prime Minister Paul Martin but was discontinued under the Conservatives.

The current Conservative government has permanently extended $2 billion a year in gas-tax money to municipalities, but for a wider range of infrastructure needs.