A FRESH bout of hysteria over Australia's debt position has been challenged by at least two economists, who say they are sick of misleading comments about debt levels that are very low by global standards.
Market Economics managing director Stephen Koukoulas is delighted that there should be a debate on the economy heading into the September 14 federal election.
"But let's get the context and the starting point right," Mr Koukoulas told AAP.
"I'm sick of the misinformation campaign being run by the Liberal Party and sections of the media about the Australian economy."
Going on the attack on Wednesday, Opposition Leader Tony Abbott said Labor's debt had gone "up and up and up".
"My fear, and the growing fear of the Australian public, is that the government will try to solve its problems by increasing your problems," Mr Abbott told reporters in Melbourne.
"We have a prime minister that is mortgaging your future to secure her future."
Sydney's Daily Telegraph cited Bank of America Merrill Lynch research forecasting net debt would rise by $21 billion in the May budget.
That would take total net debt to $164.3 billion, from $143.3 billion forecast in the mid-year budget review released in October - an increase of about 83 per cent from $89.5 billion since Labor retained office in 2010.
A spokesman for Assistant Treasurer David Bradbury said debt figures would be updated in the May 14 budget, as usual.
He said the Daily Telegraph report was misleading because it didn't take into account the $160 billion hit to revenues during 2008-09 global financial crisis, when the government accrued debt to stop the economy from going into recession.
Mr Koukoulas, a former adviser to Prime Minister Julia Gillard, and previously a chief economist at two global banks, said Labor had made the choice to support local jobs during the global financial crisis.
"The fact is Australia's net debt is dramatically lower than the net debt levels for every single major advanced economy," he said.
Australia's current net debt is 10 per cent of gross domestic product, compared with Canada at 35 per cent, and the US and UK at 80 per cent.
Mr Bradbury said in a statement the government was "reducing net debt in a sustainable way that ensures our economy remains one of the strongest in the world and protects Australian jobs and economic growth".
But shadow treasurer Joe Hockey said Labor should be comparing its performance with those of developed, commodity-exporting countries with balance sheets in the black, such as Chile, Sweden, Finland and Norway.
"Labor has squandered the good financial management of the Howard government," he said.
In the last budget, the government again raised the gross debt ceiling to $300 billion from $250 billion.
There are $266.5 billion of commonwealth government securities (CGS) on issue at present.
TD Securities head of Asia-Pacific research Annette Beacher said the average person would see that as a huge figure that had expanded dramatically in the past decade.
"But so has the Australian economy," Ms Beacher said in a note to clients.
She said Australian debt was rated triple-A by all three major ratings agencies because of Australia's relatively outstanding fiscal and debt metrics.
Australia is one of only seven countries that enjoys that status.
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