Legislation has been passed by MPs allowing Government to raise its statutory debt ceiling from $1 billion to $1.25 billion.

The move on Monday came despite vociferous protests from the Opposition, who said Government's financial stable door is wide open "and the horse is bolting".

Minister of Finance Paula Cox announced the plan in the 2010-2011 Budget, unveiled on Friday. She explained on Monday: "The decision to raise the ceiling was taken to account for Government debt guarantees that are charged against the statutory debt ceiling."

Government guarantees currently total $211 million, which includes student loans guaranteed by the Government.

Ms Cox stressed: "This amendment only provides for the authority of the Government to borrow up to the newly-established limit and it is important to note that the incurrence of debt or long term borrowing will only be incurred when absolutely necessary."

She reassured the country that the move is "sustainable" and is necessary to maintain public services. She also told the House of Assembly: "The proposed statutory debt ceiling of $1.25 billion is sensible, flexible, and entirely within the affordability parameters of our economy."

However, Shadow Finance Minister E.T (Bob) Richards lambasted Government for the move. He complained: "We've seen the debt ceilings in this country go up like one side of a skyscraper if you look at it in terms of a bar chart. It just keeps going up and up and up and it's a cause of great concern to this country."

He went on to accuse the Government of failing to live within its means, and failing to hold off on non-essential capital projects until they can be afforded.

"These things are a trend and it's a scary trend because there's no real effort to control the costs of Government," he said.

His UBP colleague Patricia Gordon-Pamplin said cost overruns on capital projects mean Government has been getting "one for the cost of two".

She said of Ms Cox: "This is being done at the hands of fiscal indiscipline by the Ministers who put her in this position."

She said it could be argued that Ms Cox should have exerted greater control "but at this point the stable door is opened and the horse is bolting".

John Barritt, of the UBP, said his party could not back the move because "this country cannot continue on this trend."

However, Ms Cox hit back, saying: "There's a difference between raising the debt ceiling and debt. One is providing the enabling framework so we have the statutory ability but it doesn't mean that automatically we are incurring that debt and I think there's an attempt by the broad brush of the Opposition to be woolly and fuzzy on that issue."

The legislation was passed despite the Opposition voting against it, and will come into effect on April 1.