Budgetary/fiscal policy  Goals of budgetary policy   Budget outcomes   Cash v underlying outcome   Fiscal outcome   Composition of revenue   Composition of expenditure   Financing a deficit   Dealing with a surplus   Actual v estimated outcome  Auto v discretionary stabilisers   Expansionary v contractionary  Rationale for budget surplus   Fiscal drag/bracket creep   BP and economic goals   Fiscal strategy   Eco growth  Inflation Employment  Ext stability  Income dist  Living stds  BP strengths + weaknesses  Economicstutor..com.au

Copyright © All rights reserved. Site administered by CPAP and content provided by Romeo Salla    

Email: admin@economicstutor.com.au     romeosalla@economicstutor.com.au

 Course notes quick navigation

1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

Next page

medium term fiscal strategy

Whilst the overriding goal is to improve living standards, the federal government outlines its medium term fiscal strategy which enables it to better achieve its ultimate goal.  Typically, the government's fiscal strategy is to ensure that government finances are stable and sustainable such that it can meet its current and future spending commitments.  The key elements of the strategy are to:

1.  Achieve budget surpluses, on average, over the medium term.

2. Not increase the tax burden compared to 2007-8 levels;

3.  Improve the net financial worth of the federal government over the medium term.

Test yourself Previous page