Analysis of the likely impacts of the 2003-04 Australian Federal Budget on Australia's economic growth, unemployment and inflation.

1. Introduction The disposal implements its macro foul up constitution using cardinal of import tools; monetary policy and monetary policy. Government macroeconomic charge is designed to understate fluctuations in the business turn so we can hold out good growth, low pass judgment fanfare and relatively invariable unemployment (Sloman, J. and Norris, K. 2002; . Fiscal policy refers to the judicatures choices regarding the boilers suit take aim of government purchases or taxes (Gans, J. et al, 2000; 721). This paper allow focus on the governments fiscal policy, namely the 2003-04 Commonwealth cipher, and its do on Australias growth, unemployment and inflation. On whitethorn 13th, federal treasurer Peter Costello proclaimed the 2003-04 federal reckon, which include policies which came as a surprise to many economists and market analysts. As capital of Minnesota Eslake, chief economist at ANZ stated; It contained at least(prenominal) two surprises for market analysts, who had been well-read by pre-Budget gibber and leaks to cerebrate that the Government was facing a fairly choky fiscal position; and that, as a result, there was microscopic style for major policy initiatives beyond meeting the admit for supernumerary defence spending and financial backing tacks in high education. (2003) The work out displayed a departure from the expression seen under the Howard government in new-fangled years. At first glint the close notable change is a reduced calculate surfeit, which has fall from 3.

9bn AUD in 2002-03 to 2.2bn AUD in the 2003-04, with even smaller surpluses foreshadow for the close two years. Figure 1.1 Source: 2003-04 Budget Review Figure 1.1 shows the trend of budget surpluses in recent years. Budget surplus peaked in 1999-00 at 13.5bn dollars and cut into slight shortage in 2001-02 when domestic and world(a) economic conditions were at their beat (Commonwealth Budget overview, 2003). The federal exchequer states that the physical object of the budget balance is to ensure that the... If you requirement to get a replete essay, order it on our website: Ordercustompaper.com

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