Australia’s big-spending state governments are recording some of the largest deficits in the developed world, putting state debt on track to triple by 2028 relative to pre-pandemic levels, ratings agency S&P Global has warned.

The spending binge means the states’ collective debt bill could hit $800 billion in 2028, up from just $266 billion in 2019, according to a new analysis by the ratings agency, provided to The Australian Financial Review.