Fiscal Policy - Australia

Demand-side policy 2: Fiscal (bud apprehendary) policy Definition of financial policy calculateary policy refers to changes in the level and art object of federal administration receipts and payments for the forthcoming 12 months. Operated by the government, specifically the financial officer in consultation with separate key ministers. The aim(s) of financial policy metier endpoint dodging aims * The spiritualist term aim of fiscal policy is to come across budget surplus, on average, over the medium term. * This gist that budget surpluses in stops of strong fruit will be used to pay for budget deficits stack away during downturns * Helps to find out that the government does not add to public debt * other(a) medium term goals include: * Not increasing the tax burden compared to 2007/08 levels, which federal agency that the government must keep taxes on average to a lower place 24.7% of GDP * Improving the net fi nancial outlay bearing of the Federal government activity over the medium term, to ensure that it has adapted financial assets to withstand economic shocks.

Longer-term aims The budget in every case considers longer-term goals of improving living standards of Australians, increasing the productive tact of the nation A shift in emphasis of fiscal policy The budget has shifted in emphasis in youthful years: * In the mid-2000s the Australian providence was overture productive capacity: * figure surplus was increased by mining boom and resulting gild tax receipts, which were very high. G overnment were able to cut personalized inc! ome tax rates during this period * Emphasis shifted to raising the productive capacity of the nation, and increasing moil force participation to deal with labour shortages * During the GFC the Australian economy went into a downturn with weak AD * stinting input signal packages delivered as the government sought to avoid recession * budget automatically and deliberately moved into deficit * In the post-GFC recovery...If you penury to get a full essay, order it on our website: BestEssayCheap.com

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