TORONTO - An NDP government would be well-equipped to handle Ontario's economy in the event of a downturn despite the party's less-than-stellar performance the last time it was in power, leader Andrea Horwath said Wednesday.

"We as New Democrats have a better record than the other two parties when it comes to deficit budgets," Horwath said before boarding her campaign bus at the legislature Wednesday.

"I'm going to follow in the footsteps of premiers like Gary Doer, premiers like Darrell Dexter and, in fact the founder of my party, Tommy Douglas, who believed that you have to have a balanced budget if you're going to provide a good economy and opportunity for people in your province."

Horwath is embarking on her first campaign as leader at a time of economic uncertainty, with economists warning a second recession could bring more hardships to Ontario's already fragile economy.

Jobs and pocketbook issues have emerged as a main theme of this campaign, with all parties trying to prove only they can be trusted to get the province back on track if they are elected Oct. 6.

Some experts believe voters tend to trust the Progressive Conservatives more when it comes to the economy, and financial acumen may be an even harder sell for the NDP as some still feel the sting of former premier Bob Rae's unpopular tenure.

Rae led the NDP to an election victory in 1990, but soon faced an economic downturn that was difficult for his inexperienced caucus to manage. That led to budget cutbacks that became known as "Rae Days" -- forcing teachers, doctors, nurses and other civil servants to take 10 days off per year without pay in order to fight the deficit.

"The history in this province of the NDP being able to steer the course during challenging economic times is one that Ontarians know wisely," said Liberal Laurel Broten.

"Our government has had a really focused agenda in the past eight years rebuilding our public services, leading North American in job recovery and creating the economy of the future -- that will be the contrast that we'll talk to Ontarians about."

The Tories have promised to balance the budget no later than 2017-18, and the Liberal government recently lowered its budget deficit to $14 billion, down $2.7 billion from the shortfall projected in the March 2011 budget.

The NDP has promised to balance the books by 2017.

Before ending the day at a rally in Horwath's hometown of Hamilton, the campaign made its first stop York South Weston, a Toronto riding, currently held by Liberal Laura Albanese.

The federal New Democrats unseated a longtime Liberal in the federal election in May, and the riding is one of many in the Greater Toronto Area that the parties are expected to focus on.

Horwath, however, said nothing should be read into her chosen first stop.

"We're focusing on all ridings across the province," she said after receiving an enthusiastic welcome by supporters at the rally -- including one woman who threw her arms around Horwath after jumping in for a photo.

"We're going to target Liberal ridings, we're going to target Conservative ridings, we're just going to work hard to show the people of Ontario that they have a choice in this election, a choice that puts them first."