Australia's net debt will soar to a record $677.1 billion this financial year as the nation grapples with the coronavirus recession.
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Net debt was estimated to be $488.2 billion or 24.6 per cent of GDP at the end of 2019/20, rising to 35.7 per cent in 2020/21.
"Despite our increased debt levels, they remain lower than what many comparable nations went into this crisis with," Treasurer Josh Frydenberg told reporters in Canberra on Thursday.
Asked about paying back debt, Finance Minister Mathias Cormann said government spending was crucial to navigating the crisis.
"Are you suggesting we shouldn't have provided the support we did to boost the health system, to protect jobs, to protect livelihoods?" he said.
"In the circumstances, what was the alternative?"
The government has spent $164.1 billion on coronavirus support measures including wage subsidies and increased unemployment payments for millions of Australians.
Senator Cormann said job creation would lead to stronger economic growth through higher revenue and lower welfare payments.
"The way to get on top of this debt is by growing the economy more strongly and creating more opportunity for Australians to get ahead."
He said Australia's debt level as a share to GDP was still lower than many other countries before the crisis.
Mr Frydenberg said paying back the debt would take years.
"We're not putting a date on it because we want to grow the economy," the treasurer said.
"The pathway to growing the economy is through skills programs, infrastructure investment and tax reform."
Australian Associated Press
