A former finance minister says borrowing money to stimulate economies now, could create even bigger problems further down the track

Australia's federal government last night announced a big spend-up on aged care, disability services, mental health, roads and training in its annual budget.

It's taking on more debt -- in the hopes of creating a quarter of a million jobs over the next two years.

Steven Joyce says all governments needs to balance immediate stimulus needs, with the long-term picture.

He says the challenge for everyone is dealing with the present, while considering what will happen after the pandemic.