Labour leader Ed Miliband has dismissed claims there is a £27.9 billion "black hole" in his party's spending plans as "nonsense".
Treasury minister Sajid Javid released an analysis by Treasury officials which he said showed Labour promises would require more than £1,000 extra borrowing per household in 2015.
But Mr Miliband insisted Labour would not increase borrowing to fund day to day spending in its first year of power if the party wins the next election.
He told BBC 1's Andrew Marr Show: "Let me be clear, we have said in 2015/16 that Labour won't be borrowing more for day to day spending.
"We have been absolutely clear about that. The next Labour government will be facing different circumstances from the last.
"Ed Balls and I have both said times are going to be tough and frankly I think Treasury ministers should be worrying about the cost of living crisis facing families and not making up things about the Labour party."