This website uses cookies to ensure you have the best experience. Learn more

Australian Budget 2007 Assignment

2675 words - 11 pages

Andrew Ong Year 11 Economics Budget Research Assignment
The Federal Commonwealth 2007-08 budget was announced by Peter Costello for the 07/08 financial year on 8TH May 2007. In a period of economic growth the government will want to sustain the expansion to ensure the security of Australians in the future.A budget is a financial plan where revenue and expenditure are planned and itemized. A budget's purpose is to have a set goal that can be achieve within a set time. Forecasting or predicting expected future events and knowing where the revenue would come from and where the revenue should be spent is important to continue cash flow. There are two main types of budget; personal and ...view middle of the document...

The stance of the fiscal policy can be one of the following; expansionary, contractionary or neutral, the outcome of the budget are determine by the stance of the fiscal policy set by the government as shown below in figure 1.Figure 1(Adapted from Figure 13.4: "Possible Government Budget Outcomes" Year 11 Economics 2007 page 257, Tim Riley)Contractionary fiscal policy happens when the government raises tax or lower spending or a combination of both, in a contractionary budget government spends less than the tax revenue collected which makes the budget a surplus budget. Expansionary fiscal policy involves increase government spending, lower taxes or a combination of both, in an expansionary budget government spend more than collected tax revenue which makes the budget a deficit. Another stance of fiscal policy is neutral where the government spending matches government revenue, this is neither a surplus or deficit budget. The government's 2007-08 budget is an expansionary budget.The key economic indicators are GDP, inflation, unemployment and the current account deficit. The GDP is the measurement of the total value of the goods and services produced. Inflation is the measurement of the rate of price rising of goods and services. Unemployment is the measurement of the total unemployed in the labour force. Current account deficit is the difference between export and import. The treasury estimates that Australians should expect near perfect economic conditions this year with GDP growth averaging 3.75 percent and at this time next year we can expect the economy growing at 4.25 percent. Australians should also expect the jobs growth of 2.5 percent to drop to 1.5 percent and would cause unemployment to hover around 5 percent. The treasury also forecast inflation to fall from 2.75 percent to 2.5 percent. Current account deficit is -65 billion dollars.The strong growth in the GDP in 2007-08 reflects a strong growth in consumption and business investment and modest growth in investment and accelerating export growth, this despite the severe impact of the drought Australia is experiencing. Inflation falling to 2.5 percent is again expected to fall below 2 percent temporarily through the year til June quarter 2007 because of automotive fuel prices stabilizing and fruit prices remain below the highs experienced last year, the pressures on inflation are expected to be moderate as labour cost ease which reflects improved productivity. Unemployment is rising to and hovering around 5 percent because of participation rate that is expected to rise to 65 percent, the treasury forecasts a rise in unemployment and participation rate partly because the new requirements for Disability support pension and Parenting payment recipients which would result in more people entering the labour force. Current account deficit is forecast by the treasury to expand to 6 percent of GDP in 07-08, with growth in import which would outgrowth export, the expected expanding in the...

Find Another Essay On Australian Budget 2007 Assignment

PRIVATE SECTOR’S PERCEPTION OF THE RISK ALLOCATION IN PUBLIC-PRIVATE PARTNERSHIP (PPP) ARRANGEMENT

1013 words - 5 pages INTRODUCTION 1.1. Background of Study The existing of various risks and financial limitation always holds the government back during initiating new infrastructure projects. Therefore, it is important for developing country like Malaysia to practice PPP as it can help the government to save resources by share the risks to the private sector for unfamiliar projects (Hodge & Greve, 2007). In general, there are two significant advantages of

GFC Report

1049 words - 4 pages materials particularly coal, iron ore and gold. The Global Financial Crisis hit the Australian economy at a lesser intensity as to the rest of the world, largely due to government policy used to reduce the impact. Economic growth during the GFC slumped, with GDP growth falling from 3.7% in 2007/8 to 1% in 2008/2009. This slump in economic growth was linked to increasing unemployment rates, which will be spoken about further into the report. The

An Analysis of Governmental Performance in Australia

896 words - 4 pages Research and Referencing Assignment ARTS1840 – Semester 1, 2010 z3332769  Critical analysis The Australian Journal of Public Administration’s research and evaluation paper explores the parliamentary scrutiny of government performance in Australia. It observes the processes the Commonwealth Parliament of Australia can use to make ministers and public servants accountable for the performance of their relevant departments. These decisions

Effects of the 2005 budget on economic activity, price stability, economic growth, full Employment and inflation

943 words - 4 pages Federal Treasurer, Peter Costello, brought down his 10th Budget saying it is framed for the future, the future opportunities of young people, the future care of the aged, the future health services that Australians will need and demand, the security of the nation, and the future growth of the Australian economy which is necessary to realize these goals.Peter Costello said the economic management of the Australian Government affects the lives of

Should the Australian Government Privatize Medibank?

1721 words - 7 pages the public and private sector (Kaboolian, 1998). The Australian government has not been immune from such trends since the 1980s, when it was heavily drawn on the menu of practices associated with the New Public Management to initiate their reform agendas ( ). Labor began to initiate reformation agendas during their government (Aulich & Janine, 2007). In addition, John Howard gave a detailed articulation of the privatisation agenda, which provides

Tony Albert and His Role in Contemporary Australian Art

2574 words - 10 pages 'making of the Aborigines'." Journal of Australian Studies 27.80 (2003): 177-88. Web.][4: Paul Wighton, Op. Cit.][5: Hannah Fink. "Self-Evident: Indigenous Artists and the Photographic Image." One Sun One Moon: Aboriginal Art in Australia. By Hetti Perkins and Margie K. C. West. Sydney: Art Gallery of New South Wales, 2007. 310-21. Print.][6: Albert, Tony. "Tony Albert." PSM Public Lecture Series. UTS, Sydney. 2013. Lecture][7: Albert has used

Fiscal Policy SA- Budget Speech

3605 words - 14 pages assignment we discuss the budget speech delivered by the minister of finance on 21 February 2007 on the following criteria: spending priorities; treasury outlook for the economy, macroeconomic influences, tax and revenue, policy implications, and practicality of rollout.Advocates of a laissez-faire economy would be blind not to acknowledge the efficiencies brought about by Government involvement through allocative expenditure on goods and services. It

District Budget Design

1861 words - 8 pages they are uniform, well planned and researched, and using the fund in the most efficient, effective way. Superintendent and School Board’s Responsibilities “The superintendent, by law in some states and by assignment in others, is the executive officer charged with carrying out the programs that the budget authorizes” (Brimley, Verstengen, Garfield, 2012, pg. 284). Some of these responsibilities are delegated within the business staff and

Social Welfare in Australia

2740 words - 11 pages Pension can and already has placed pressure on the current budget and future budgets as the proportion of Australians in the workforce compared to people in retirement decreases. It is projected that the percentage of Australians over the age of 65 will increase from 13 % in 2010 to 24% in 2050. There are currently five Australian in employment for every person who relies on Social Welfare but by 2050 there will be only 2.4 working Australians

Economic Reform/Policy Mix, Covers macro and micro economic reforms in Australia

1450 words - 6 pages measured by PPP-adjusted GDP, about 1.7% of the world economy. Australia is the 19th-largest importer and 19th-largest exporter. The Reserve Bank of Australia publishes forecasts of the economy quarterly.The Australian economy is dominated by its service sector, comprising 68% of GDP. The mining sector represents 10% of GDP; the "mining-related economy" represents 9% of GDP - the total mining sector is 19% of GDP. Economic growth is largely dependent

Gambling in Australia

831 words - 4 pages formed over the years such as electronic gaming machines, gaming tables, and pokers. Gambling is embedded within Australian society as part of their culture as a form of entertainment that attracts tourist and a source of revenue government and private enterprise. Some might say that gambling is not as bad due to the fact that it promotes the growth of the country, both in foreign investment, foreign budget and taxes. they may go further to

Similar Essays

Major Domestic & International Events Impact The Value Of The Australian Dollar

1556 words - 7 pages of global stock markets, levels of global growth and demand and lastly the level of overseas confidence. An example of this would be the 2007 market crash in the U.S. which affected international stock markets. The Reserve Bank of Australia's contractionary stance over 2007 had caused the Australian Dollar to reach 23 year high against the U.S. Dollar.The Australian Dollar now relies on its commodity export such as gold, copper, coal and wool

The Australian Government Essay

1432 words - 6 pages parties at the time but The Australian Labor Party was the only one that has survived, but the party did experience 3 splits (Farnsworth).The current Prime Minister is a member of this party. Some of their current goals are to increase hospital funding by 50%, establish a single national school curriculum, getting the budget back in the back 3 years early, etc (Australian Labor Party). They are similar to the Democrats in the United States of America

Australian Political Parties Alp, Liberals, Greens

2716 words - 11 pages in government since the Australian Federation in 1901. The party has been in Government during 1904, 1908-1909, 1910-13, 1914-15, 1915-1916, 1929-1932, 1914-1945, 1945-1949, 1972-1975, 1983-1991, 1991-1996, 2007-present.6.Major achievements of the party: Major achievements of the ALP include founding the Commonwealth Bank, introduction of a maternity allowance, establishment of the Australian Navy, taking over the issue of bank notes, introduced a

The Meaning Of The Anu Motto

774 words - 3 pages March 18, 2011 (Australian National University 1997) Assignment 1 Discussion of the ANU Motto and its meaning Part 1 - EssayThe Australian National University's (ANU) motto carries inherent profound roots and meaning. Since the institution's inception in 1946, the Latin phrase "Naturam Primum Cognoscere Rerum" has assumed a place within the university's crest. This phrase has fascinating origins, tracing back to ancient Roman times