The Treasury is expecting the Government to take on $5 billion more in debt than it had previously expected over the next four years to help it cover the costs of new spending.
In its half-yearly economic and fiscal update in December, Treasury expected the Government to owe roughly $63.5 billion by the end of the 2023 financial year.
But Treasury figures, released in the 2019 Budget, showed the amount of debt the Government was now expecting to take on over the same period has jumped to just under $68.5 billion.
However, as a proportion of GDP, the Government's debt level is still expected to remain below its self-imposed debt limit of 20 per cent.
According to the Treasury's Budget analysis, the increase in debt "reflects new spending decisions".