The Australian Federal Government Budget

2731 Words6 Pages
bulb-icon

Recommended: economic development of australia

2011/2012 Federal Government Budget

The Australian Budget is an annually published document which details the Federal Government's plans to affect the level of economic activity, resource allocation, and income distribution through the use of fiscal policy. It describes the framework which the government intends to follow during the next financial year which will result in the attainment of their objectives. The budget is a publication of the government's plans regarding the use of fiscal policy, and is published to parliament and the general public on “budget night”, so as to allow open dissemination about the status of public finances and to promote transparency in Australia's fiscal policy.

The 2011-12 budget will have a strong impact on a variety of issues, including economic growth, employment, inflation, external balance, ecologically sustainable development, and equitable distribution of income. The fiscal decisions taken in this budget could potentially impact the other main weapons of economic management, such as monetary policy, which will be discussed later.

One of that main features of the 2011-12 Federal Government Budget is that it will return to surplus in 2012-13, and as such, the budget is implemented as a three year plan. This will be achieved by continuing to invest in Australia's productive capacity, and minor cuts in spending in a variety of areas. Along with this, there has been increased spending to enhance Australia's workforce, increased spending on infrastructure, improving hospitals and healthcare, improving schools, helping families and low income earners, and investment into regional areas.

The overall objective of the budget is to create a “leaner, meaner and more efficient” economy, and...

... middle of paper ...

... Australia's workforce, infrastructure, schools, hospitals & healthcare, helping families and low income earners, and investment into regional areas.

By implementing these strategies the government will have created a stronger, more efficient economy, and the focus on a stronger labour force encourages future economic growth and development for Australia.

Bibliography

http://www.budget.gov.au/

http://moneybasics.nab.com.au/category/federal-budget-2011

http://www.heraldsun.com.au/news/special-reports/this-budgets-steady-as-she-goes/story-fn8menqx-1226053607112

http://www.ipac.com.au/Federal-Budget.aspx?gclid=CJ6Nkv_csakCFdIeHAodtBD9LA

Year 12 Economics 2010 – Tim Riley, published 2009, Tim Riley publications.

http://www.youtube.com 2011 federal budget unveiled - Mark Simkin

http://www.ubs.com/1/e/hsceconomics/elearning/australias_place.html

Show More
Related

  • The Impact of the Global Financial Crisis on the Australian Economy

    2888 Words  | 6 Pages

    In response to the most challenging global economic conditions since the Great Depression, the 2009-2010 Budget and the Economic Stimulus Plan focused on nation building and was crafted to boost employment, create a solid foundation for future growth and place the Australian economy to capitalise on the global recovery.

    Read More

  • The Evolution of the Federal Budget Process

    997 Words  | 2 Pages

    For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.

    Read More

  • How Did Whitlam Change Australia

    1289 Words  | 3 Pages

    Through these areas, the impact of the Whitlam government can be clearly seen as a government with a vision to change Australia drastically, to create a fairer and better society, not only for the present, but for the future.

    Read More

  • Essay On 2016-17 Federal Budget

    1095 Words  | 3 Pages

    In early May, the 2016-17 federal budget was released, outlining the government’s proposed plans for revenue and expenditure as well as the fiscal policies that will be initiated in the following financial year. Currently, Australia is experiencing a deficit of $39.9 billion, however the government plans to reduce the deficit to $37.1 billion by 2017 by implementing the plans listed in the federal budget, which will cause the economy to become more efficient and grow faster in the long term. The budget also outlines the government's concern on certain issues and the areas of the economy that needs improvement. Disagreements over the federal budget have raised arguments for and against the governments proposed plans. The main areas that have

    Read More

  • Fiscal Policy Essay

    1105 Words  | 3 Pages

    “Fiscal policy involves varying the intended expenditure and revenue of the Australian government so as to assist in attaining the government’s economic objectives.” (Bulmer, 2014) One of the main influences on the fiscal policy in Australia is the budget; which is an estimate of income and expenditure for a set period of time. A famous economist called John Maynard Keynes discovered a remarkable economic principle called Keynesian Economics. Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. (Binder, 2008) This economic principle is continuously used in Australian economics and helps governments and economics make economically based decisions.

    Read More

  • Essay On Australia And Globalization

    915 Words  | 2 Pages

    There has been in Australia ongoing structural reform over the past two decades: including sustained tariff reform; financial market reform; reform of the operation of government business enterprises; enhancing national competition policy; changes in foreign investment rules; tax reform; labour market reform; reform of corporate governance arrangements and others. The Treasury (1999) points out the prime focus of reform has been to subject the private sector in Australia to more competition from both domestic and international sources and to improve the performance of public utilities. The desired benefits of these reforms are lower prices and increased productivity, which in turn reduce input costs for other industries and increase aggregate employment opportunities. The other desired benefit is to integrate Australia more fully into the global

    Read More

  • Preamble Pros And Cons

    641 Words  | 2 Pages

    “A budget is more than just a series of numbers on a page; it is an embodiment of our values”, Barack Obama. The utterance of these words could not have been a breath more of truth. For the Federal Budget is a reflection of the founder’s aspirations stated on the preamble. To specify, in the simplest of forms the preamble is a mission statement for the nation; it vaguely identifies the steps required for the prosperity of the nation. With the creation of the preamble, along came the Federal Budget; the budget being the nation’s budget that states the overall expenditures. The preamble being utilized in the birth process of the Federal Budget, Due to the lack of alignment between the federal budget and the preamble, funding in The big Five,

    Read More

  • Budget Process

    672 Words  | 2 Pages

    Wildavsky, A., & Caiden, N. (2004). The new politics of the budgetary process (5th ed.). New York, NY: Pearson/Longman.

    Read More

  • Marketing Strategy For Australia

    1208 Words  | 3 Pages

    Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)

    Read More

  • Cause Of Urbanization In Australia

    891 Words  | 2 Pages

    Over the last 20 years, the Australian economy has picked up as a result of imported skill labour. Australia offers a wide range of safe and relatively fair job opportunities. Lastly, basic education in Australia is free and universities offer a wide range of courses to accustom for the student’s abilities and desires.

    Read More

  • The History and Culture of Australia

    1894 Words  | 4 Pages

    Australia experienced an average of 3.5% economic growth over the past 21 years. The countries growing economy features a very low unemployment rate of just 5% and a low debt of $1.397 trillion American Dollars. About 75% of jobs are in the services sector, making it the largest part of Australia’s economy. The open market in Australia has little restriction on imports of goods and services. Australia’s open market has stimulated its economies productivity over the past 21 years as well.

    Read More

  • Budget Deficit In Australia Essay

    1636 Words  | 4 Pages

    According to data on trading economics, the budget deficit in Australia happened since 2008. Pash (2016) stated that Australia deficit currently is sitting on 41.7 billion dollars, 4.3 billion dollars higher than expectation. It will be estimated that Australia deficit will reach almost $ 129 billion in 2018/2019. An increase in budget deficit leads to the raise in Australian debt that affect Australian economy to be under threat. Australian debt recently is A$ 400.89 billion, increases significantly for about 32.16 billion dollar from 2015. Janda (2016) reported that Australia is the biggest AAA country since 2009 that has the highest increasing debt. An increased debt affect to the decline in the Australian economic reputation. As Janda (2016) points out, Australian sovereign rating decline one point downgrade from AAA to AA+. The deteriorates of the Australian economic reputation influence the investor confidence. As the time went by, the Australian economic growth will decline because there is no revenue to be gained from the investor. In consequence, the only possible method to pay the debt is raising tax for future generation. According to Wood and Daley (2014), an increase in $40 billion deficit will affect to tax burden $10.000 for

    Read More

  • Budget Analysis

    1842 Words  | 4 Pages

    A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.

    Read More

  • An Essay On Australia

    822 Words  | 2 Pages

    ...ources. This allows Australia to use these resources for themselves but also sell them to make profit and improve their economy. The main industries in Australia are mining, industrial and transportation equipment, food processing, chemicals and steel manufacturing (Briney). Which all sound like low quality, low pay jobs, but they are all need very badly for things that we use everyday such as our cars from steel manufactures. Tourism is a huge player in the Australian economy, on average every year around 6.1 million people travel to Australia for vacation. They come for good reasons as well due to the natural beauty of the country. Agriculture also plays a role in the country's economy most of the farming in Australia is done in the fertile plains of the southeast and its main produce include wheat, barley, sugarcane, fruits, cattle, sheep and poultry (Briney).

    Read More

  • The Roles of the National Budget

    624 Words  | 2 Pages

    Fiscal Affairs Department of IMF in 2009 declared that a statement of the main central government tax expenditures should be required as part of the budget or related fiscal documentation, indicating the public policy purpose of each provision, its duration, and the intended beneficiaries. In addition, there is an area of the budget that routinely escapes rigorous inspection. This is the large allocation of state resources through the use of tax expenditures which reduce the taxes that might otherwise be collected. The tax expenditure report supplements the annual or biennial budget document (Benker, 1986).

    Read More

More about The Australian Federal Government Budget

Open Document