Australia's two major political parties are engaging in what has been dubbed a pre-election "spendathon" that may do little to reduce the national debt or improve living standards, a top economist has warned.

AMP chief economist Shane Oliver criticized both Labor and the Coalition for offering big-ticket items such as tax cuts, fuel subsidies, and housing initiatives that, he argued, provided little lasting benefit for Australians.

"These are mostly just band-aid solutions," Oliver said.

Debt on the rise

The economist warned that the policies from both sides would only deepen Australia's growing debt burden.

The national debt is projected to reach AU$940 billion -- or 33.7% of GDP -- by 2024-25. Budget forecasts suggest the debt could increase above AU$1.2 trillion, or 36.8% of GDP, by 2028-29,

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