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Analysis by consulting firm EY suggests that the federal government will need to borrow about $90 billion in 2024-25 to finance its spending programs. This is $15 billion higher than the previous financial year.
Meanwhile, the state and territory governments are set to borrow a combined $101.5 billion in 2024-25. Victoria and Queensland will account for about $59 billion (almost 60%) of this debt.
EY also estimates that the combined interest payments of the federal, state, and territory governments will top $44 billion in 2024-25 and forecast to rise to $63 billion by 2027-28.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.