I would say in Australia's case that more Corporate debt means less government revenue. Corporations in Australia are given very generous kick backs on their debt, they also use the debt to lower their profits and so pay much less tax by taking loans off their corporate entities and claiming that debt.
Given that governments are unduly influenced by corporate donations is the reason why our governments do not go after these corporate profit shifters.
There is definitely a link between more corporate debt and higher government debt. Less government revenue means more borrowing.
