Treasurer Joe Hockey is reportedly looking to do a deal with the Greens which would allow him to raise Australia’s debt limit to $500 billion.
After borrowing another $800 million on Friday, the Australian government is $3.9 billion from reaching the current cap of $300 billion.
Fairfax is reporting that Hockey wants to know what conditions the Greens would need fulfilled if they voted to allow him to raise the debt ceiling. According to the report they are yet to reply.
Projections show Hockey risks several years of budget deficits if the ceiling is not raised. Labor stopped a Bill to raise the limit in the Senate, sending it back to the Lower House.
The Opposition says it would support an increase to $400 billion, as an economic case for the higher number has not been made.
During the election campaign Prime Minister Tony Abbott referred to the Greens as “economic fringe dwellers.” With their support, the Bill would be able to clear the Upper House.
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