Joe Hockey's budget balancing act just got that bit more difficult.
The treasurer wants to get the budget on a more even keel but doesn't want to hurt an already sluggish economy by cutting spending too deeply.
It will have to be a budget that doesn't upset voters too much given the slump in consumer sentiment after his first effort last year.
His backbench will also be closely watching his every move given its recent unrest over the government's leadership.
Now one of the world's leading credit rating agencies has thrown its thoughts into the mix.
Standard & Poor's has told the Wall Street Journal that while there is no "immediate threat" to the nation's AAA rating, it has sent a warning should government debt continue to grow.
In an interview, S&P's sovereign analyst Craig Michaels expects government debt to rise above 20 per cent of gross domestic product in coming years.
But he warns the rating would come under "direct pressure" if debt moved closer to 30 per cent.
In December's mid-year budget review, Mr Hockey estimated government debt at 23 per cent of GDP in 2014/15, rising to 26.1 per cent by 2016/17, then 26 per cent in 2017/18.
However, JP Morgan strategist Sally Auld estimates the budget is already in a worse position than envisaged in December.
"Still declining commodity prices mean government revenues are under pressure," Ms Auld says in a note to clients.
A difficult political environment has also hampered the government's ability to legislate cost savings.
Mr Michaels said there is a "bit of wriggle room" from a ratings perspective given that debt is still relatively low.
"But we will still be looking to see ongoing restraint in spending growth," he said.
Reserve Bank governor Glenn Stevens also warned last week that Australia faces a "significant problem" should debt growth continue on its current trajectory.
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