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 scotch insurance utilize both of import tools; fiscal policy and monetary policy. governance macroeconomic charge is designed to minimise fluctuations in the air cycle so we can experience good growth, scurvy rates fanfare and relatively stable unemployment (Sloman, J. and Norris, K. 2002; . Fiscal policy refers to the governments choices regarding the overall take aim of government purchases or taxes (Gans, J. et al, 2000; 721). This authorship will focus on the governments fiscal policy, namely the 2003-04 rural area Budget, and its effects on Australias growth, unemployment and inflation. On whitethorn 13th, federal financial officer Peter Costello announced the 2003-04 federal budget, which include policies which came as a surprise to many economists and market analysts. As Saul Eslake, captain economist at ANZ stated; It contained at least two surprises for market analysts, who had been conditioned by pre-Budget gibber and leaks to believe that the judicature was facing a fairly choky financial pose; and that, as a result, there was microscopic room for major(ip) policy initiatives beyond meeting the admit for additional defending team spending and funding changes in high education. (2003) The budget displayed a departure from the pattern seen under the Howard government in new-fangled years. At first glance the close notable change is a reduced budget surplus, which has fall from 3.9bn AUD in 2002-03 to 2.2bn AUD in the 2003-04, with however smaller surpluses forecast for the close two years. Figure 1.1 reference point: 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 deficit in 2001-02 when domestic and world-wide economic conditions were at their worst (Commonwealth Budget overview, 2003). The federal exchequer states that the physical object of the budget bal ance is to ensure that the... ! If you neediness to get a full essay, order it on our website: OrderCustomPaper.com

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