Scott Morrison looks set to break the government's own self-imposed 'debt ceiling'

Treasurer Scott Morrison. Photo: Getty Images.

Federal government debt is predicted to hit $500 billion by mid-year, or sooner.

With the total government debt now sitting at more than $474 billion Scott Morrison is under pressure to raise the $500 billion debt ceiling set by former treasurer Joe Hockey three years ago.

But doing that would be seen as the government is failing its own economic test, according to the Opposition.

“It’s no surprise Australia’s AAA credit rating is under immediate threat given we have a government that is now breaking the tests it set for itself just a few years ago,” shadow treasurer Chris Bowen told Fairfax Media.

The $500 billion debt is almost double the $274 billion inherited when Tony Abbott won power in September 2013.

Morrison maintains that the government has taken steps to substantially reduce the projected debt and is making progress despite the debt and deficit legacy left by the Opposition.

The Sydney Morning Herald has more.

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