Treasurer Joe Hockey’s proposed $500 billion debt ceiling increase will go back to the Lower House, after Labor and the Greens combined in the Senate to limited the cap to $400 billion.
This will either be accepted, or the Bill will be rejected in the House of Representatives. If this happens it will need to be sent back to the Upper House.
Labor does not believe the case for the bigger number has been made, and wants Hockey to release his mid-year economic outlook before it decides on this increase.
Hockey has said if the debt ceiling is not raised the opposition will be responsible for spending cuts he will be forced to make.
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