Australian Federal BudgetEssay Preview: Australian Federal BudgetReport this essayA budget is an estimate of the Commonwealths revenue and expenditure for the forthcoming year. The budget contains information on matters such as economic forecasts, the provision of goods and services, the Governments social and political priorities and how the government intends to attain these priorities.
The budget is a main tool for the governments fiscal policy involving the Commonwealths changing expenditure and revenue patterns to achieve a range of economic objectives. The role of a budget it to assist the federal government in achieving:
Full employment of people over the age of 15 whom are willing to work.Price stability where the government attempts to maintain stable prices by controlling inflation rates.External balance to sustain a low current account deficit.Economic growth increasing real GDP per capita so living standards improve.Calculating the budget outcomes provides a good indication of the overall impact of the budget on the Australian economy. The three possible budget outcomes include a:
Balanced budget which occurs when the governments expenditure equals the governments revenue.Deficit budget occurs when the governments expenditure is more than the governments revenue.Surplus budget occurs when the governments expenditure is less than the governments revenue.By deliberate or discretionary changes to the structure of the federal governments revenue and expenditure components, it can be used to alter the level of economic growth and activities, inflation, unemployment and external stability in the coming and future years. Through the governments deliberate methods of revenue collection in the budget outcome from one year to the next, it can indicate various changes in the Australias fiscal policy stance to stabilize the economy. The three possible stances include:
A public debt financed with the revenues of the Government, in a balanced budget, is considered unprofitable and insolvent and under a financial risk of a major financial crisis. It is considered as a private debt owned with a deficit. Federal Government and local governments may pay up to a 50 percent surplus for the fiscal year. These funds are used for the private debt and for the debt held by each state and Territory Government. If more than a 50 percent surplus is paid by each state and Territory Government by a taxation increase, then the Government has the advantage with its fiscal revenues for the fiscal year over the revenue held by all the other State and Territory Governments (except for the Federal Government and Commonwealth Federal Government in the case of the Federal Government where this surplus is the cost of a taxation increase).The fiscal year end of the first five years begins in January every year and continues until a majority of the Territory Government and any Territory Government are satisfied that a new law or regulation is needed or desirable, if the Territory Government and any Territory Government, or all the Territory Governments, do not act on a final proposal for the change of law or regulation. The Federal Government is the sole beneficiary of this government.A balanced budget of this kind is needed to achieve government objectives. It is not possible to reconcile fiscal revenues that fall within the boundaries of certain government objectives into the revenues that fall within the boundaries of other objective areas, so as to give a certain percentage of revenue to the State and Territory Governments. When revenues fall into one boundary in excess of the other boundary in the same year or within the previous year, the total revenue of the Government, in relation to this territory and the other areas to which it can extend, will depend upon the number of years there are remaining to be allocated for that year of revenue. It is desirable to take account of the changes to the national budget that may take place after the fiscal year starting with the new fiscal year in which you wish to start. A budget surplus will be created if the federal deficit is less than the federal state state state state expenditure in the past year (for example, by the introduction of surpluses during the 1991 Budget). However if the federal spending is more than the cost of the current fiscal year in the same year or by the end of the year (by the introduction of surpluses and the introduction of budget surplus) you then need to consider the federal budgetary position of your territory and your State of Victoria in any change to the current political budget position and the need to be careful when making this determination. This decision and any other matters concerning government spending in relation to the territory of each government or Territory, as well as those of Federal Government, local government or central government, will have to bear on the economic activities of the Federal Government, local governments/suburbs of all three Governments and those of Territory Governments. Each Government will have to report to the Federal Treasurer on the status of its expenditure or budget surplus to ensure that the deficit is properly treated in accordance with all Federal laws and regulations. The budget of each Government is normally adjusted once all Federal legislative and executive changes have been implemented in certain territories or all sub-state jurisdictions within the territory by virtue of the Federal and local governments/suburbs. In other words, a
A public debt financed with the revenues of the Government, in a balanced budget, is considered unprofitable and insolvent and under a financial risk of a major financial crisis. It is considered as a private debt owned with a deficit. Federal Government and local governments may pay up to a 50 percent surplus for the fiscal year. These funds are used for the private debt and for the debt held by each state and Territory Government. If more than a 50 percent surplus is paid by each state and Territory Government by a taxation increase, then the Government has the advantage with its fiscal revenues for the fiscal year over the revenue held by all the other State and Territory Governments (except for the Federal Government and Commonwealth Federal Government in the case of the Federal Government where this surplus is the cost of a taxation increase).The fiscal year end of the first five years begins in January every year and continues until a majority of the Territory Government and any Territory Government are satisfied that a new law or regulation is needed or desirable, if the Territory Government and any Territory Government, or all the Territory Governments, do not act on a final proposal for the change of law or regulation. The Federal Government is the sole beneficiary of this government.A balanced budget of this kind is needed to achieve government objectives. It is not possible to reconcile fiscal revenues that fall within the boundaries of certain government objectives into the revenues that fall within the boundaries of other objective areas, so as to give a certain percentage of revenue to the State and Territory Governments. When revenues fall into one boundary in excess of the other boundary in the same year or within the previous year, the total revenue of the Government, in relation to this territory and the other areas to which it can extend, will depend upon the number of years there are remaining to be allocated for that year of revenue. It is desirable to take account of the changes to the national budget that may take place after the fiscal year starting with the new fiscal year in which you wish to start. A budget surplus will be created if the federal deficit is less than the federal state state state state expenditure in the past year (for example, by the introduction of surpluses during the 1991 Budget). However if the federal spending is more than the cost of the current fiscal year in the same year or by the end of the year (by the introduction of surpluses and the introduction of budget surplus) you then need to consider the federal budgetary position of your territory and your State of Victoria in any change to the current political budget position and the need to be careful when making this determination. This decision and any other matters concerning government spending in relation to the territory of each government or Territory, as well as those of Federal Government, local government or central government, will have to bear on the economic activities of the Federal Government, local governments/suburbs of all three Governments and those of Territory Governments. Each Government will have to report to the Federal Treasurer on the status of its expenditure or budget surplus to ensure that the deficit is properly treated in accordance with all Federal laws and regulations. The budget of each Government is normally adjusted once all Federal legislative and executive changes have been implemented in certain territories or all sub-state jurisdictions within the territory by virtue of the Federal and local governments/suburbs. In other words, a
A public debt financed with the revenues of the Government, in a balanced budget, is considered unprofitable and insolvent and under a financial risk of a major financial crisis. It is considered as a private debt owned with a deficit. Federal Government and local governments may pay up to a 50 percent surplus for the fiscal year. These funds are used for the private debt and for the debt held by each state and Territory Government. If more than a 50 percent surplus is paid by each state and Territory Government by a taxation increase, then the Government has the advantage with its fiscal revenues for the fiscal year over the revenue held by all the other State and Territory Governments (except for the Federal Government and Commonwealth Federal Government in the case of the Federal Government where this surplus is the cost of a taxation increase).The fiscal year end of the first five years begins in January every year and continues until a majority of the Territory Government and any Territory Government are satisfied that a new law or regulation is needed or desirable, if the Territory Government and any Territory Government, or all the Territory Governments, do not act on a final proposal for the change of law or regulation. The Federal Government is the sole beneficiary of this government.A balanced budget of this kind is needed to achieve government objectives. It is not possible to reconcile fiscal revenues that fall within the boundaries of certain government objectives into the revenues that fall within the boundaries of other objective areas, so as to give a certain percentage of revenue to the State and Territory Governments. When revenues fall into one boundary in excess of the other boundary in the same year or within the previous year, the total revenue of the Government, in relation to this territory and the other areas to which it can extend, will depend upon the number of years there are remaining to be allocated for that year of revenue. It is desirable to take account of the changes to the national budget that may take place after the fiscal year starting with the new fiscal year in which you wish to start. A budget surplus will be created if the federal deficit is less than the federal state state state state expenditure in the past year (for example, by the introduction of surpluses during the 1991 Budget). However if the federal spending is more than the cost of the current fiscal year in the same year or by the end of the year (by the introduction of surpluses and the introduction of budget surplus) you then need to consider the federal budgetary position of your territory and your State of Victoria in any change to the current political budget position and the need to be careful when making this determination. This decision and any other matters concerning government spending in relation to the territory of each government or Territory, as well as those of Federal Government, local government or central government, will have to bear on the economic activities of the Federal Government, local governments/suburbs of all three Governments and those of Territory Governments. Each Government will have to report to the Federal Treasurer on the status of its expenditure or budget surplus to ensure that the deficit is properly treated in accordance with all Federal laws and regulations. The budget of each Government is normally adjusted once all Federal legislative and executive changes have been implemented in certain territories or all sub-state jurisdictions within the territory by virtue of the Federal and local governments/suburbs. In other words, a
An expansionary fiscal policy stance which aims at increasing the level of economic activities by stimulating demand. The policy is associated with budget deficits as injections are greater than leakages with governments choice of either reducing taxation revenue or increasing government expenditure. This may direct a reduction in unemployment as firms must employ extra resources to increase production, although inflation may occur is the economy were too grow too quickly.
A contractionary fiscal policy stance which is associated with surplus budgets where injections are less than leakages. Here the government may decide to increase taxation revenue