The Australian Government is planning to introduce a $100 million stimulus package to help support the economy after it cut the cost of petrol and other essential goods.

Treasurer Scott Morrison said on Thursday the $100bn measure would be used to reduce household debt and allow for the “resurgence” of mining.

Mr Morrison said the measure was designed to help people with “debt-related challenges” through the financial crisis.

He said the package would help Australians “retain confidence in the Australian economy”.

“We will be investing $100 billion in the economy over the next four years to get our economy back on track,” Mr Morrison told reporters.

The Federal Government has been under pressure to raise its $1.8 trillion debt-to-GDP ratio, which is the ratio of the national debt to gross domestic product.

It has cut the target by $2.8 billion.