Essay On Australian Federal Budget

For example interest rates, the cost of raw materials including fuel, the number of sales or orders that we make and in turn all of these rely on other factors. The best therefore that can be done when developing a budget is to look at all the factors that are likely to affect the budget and decide how to take account of each one. If there is a previous budget (last year or last month) then it is sensible to look at how this has been achieved or not as the case may be, and what factors affected the outcome. If we are looking at monthly budgets it might be a better comparison to look at the same month twelve months ago as well as the previous months. The more factors we take into consideration when estimating a budget, the more accurate our budget will be.

A fiscal deficit is when a government's total expenditures exceed the tax revenues that it generates. A budget deficit can be cut by either reducing public expenditure or raising taxes. In this essay, I am going to analyse the benefits and costs of increasing tax rates to reduce fiscal deficits instead of cutting government expenditure.

The budget process is a powerful planning tool for government to make important resource decisions. According the Carney and Schoenfeld‘s article on How to read a Budget, an operating budget is a reflection of government’s financial plans. When a budget is

Budgeting is perhaps the most essential process involved in the United States government. While this process seems to exist only in the background, it is, in reality, what allows all other processes of government to function as they do. In order to satisfy the most necessities of modern society, changes must be made to each of the three major categories of the budget: the big five, the middle five, and the little guys.

Some of the main reasons why Australia provides foreign aid is to increase advanced systems and technology in other countries, decrease poverty, make other countries more stable generally and financially, etc. Some government and non-government organization like Department of Foreign Affairs and Trade (DFAT), AusAID, World vision, Red cross, etc. also help provide foreign aid to other countries. Australia’s 10 main focus points and the status of achievement for some of the following in providing aid to other countries are towards the following:

Foreign aid is something that is provided by donating governments to countries in need, mostly third-world countries. Foreign aid is allocated for two extremely broad categories, economic development and military aid. Under these categories there are specific uses for foreign aid like, health, humanitarian assistance, democratic elections and even protection for forests. There is debate about foreign aid being a waste because of corrupt governments, which gives the United States speculation whether it should continue to provide foreign aid and how much. This was a popular topic in the 2012 election between Barack Obama and Mitt Romney. It would be most beneficial to the United States to maintain foreign aid levels while having conditions

Budget preparation is a process with designated groups and individuals having defined responsibilities. According to Irene S. Rubin “ The public budget process mediates between organizations and individuals who want different things and determines who gets what out of the budget.”1The Government set up an annual budget that includes people perspectives, opinions , accountability and than determine how the budget will get divided based on protected interests. Moreover, Public budgeting determines how government spend money, provide necessary resources , and limit government expenditures to prevent overspending.

There are two main perspectives on foreign aid in Australia – are we giving too much or not enough? Foreign aid is given to developing countries, and is necessary to build an environment where policies and infrastructure can be in place to support other sources of finance. Australia is part of the worldwide foreign aid commitment as we value that everyone should have a fair go, and the country plans to give $3.9 billion over 2017 and 2018. We help countries in need by contributing, food, resources, providing financial assistance, exchanging goods, personal time and knowledge. The main types of aid are humanitarian aid, which is disaster relief and emergency aid and development aid, which is a long-term commitment between nations. Australian aid is strongly on development aid particularly focused on the Asia-Pacific region, but it also has a strong commitment to African and South Asia. Interestingly, 90% of Australia’s foreign aid goes to Asia-Pacific countries such as Indonesia and Papua New Guinea, because if they build into a developed nation, then we can build trade relations, regional security and partner in defence. This is a polarizing issue that divides the nation due to different views on Australia giving aid, however, a strong foreign aid program is vital for Australia to build successful relations and regional security.

This also improves the distribution of income, a reduction in the unemployment rate with result in households yet having more spending power and yet encouraging more economic growth. An increase in employment will result in an improvement in the budget deficit as there will be a decrease in the demand for welfare benefits, thus improving the economy. The increase in the supply of goods and services (due to an increase in demand) is also expected to reduce demand pull inflation, as there is now less competition for few goods, lowering the prices to a healthy equilibrium. This can be shown in a demand and supply diagram.

The government needs to take more caution creating the federal budget. Edwards stated that “Consider Canada's experience. In the mid-1990s, the federal government faced a debt crisis caused by overspending, which is similar to America's current situation. But the Canadian government reversed course and slashed spending from 23 percent of GDP in 1993, to 17 percent by 2000, to just 15 percent today. The Canadian economy did not sink into a recession from the cuts as Keynesians would have expected but instead grew strongly during the 1990s and 2000s."

The 2014‑15 Budget is part of the Government’s Economic Action Approach to repair the budget and build a strong and prosperous economy within the next few years. The substantial savings decisions in this Budget put Australia back on track to a sustainable and responsible budget position. The Government economic objectives are to provide for Australia; full employment, economic growth, external stability and income equality.

The budget is a plan of how to spend available funds wisely, and entails a list of all expected revenues and expenses. The budget is compiled annually and marks the beginning and end of the fiscal year. While the primary burden of the budget lies with the finance department, it is the responsibility of all faculty affected by budgetary practices to provide insight into the projected financial future of the school. The goal and evidence of a successful budget is to have the actual numbers of the financial year equal or come close to the estimated

The purpose of Australian Aid is to help developing countries around the world eradicate poverty and to promote stability and prosperity both in our region and beyond, by providing different types of assistance and financial support. Although Australia receives a number of benefits due to aid, several disadvantages can also arise as a result of this link with different countries.

Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

Since the budget 2017-2018 will cause a deficit of $29.4 billion, which is decreased by $8.2 billion compares to the budget 2016-2017[1], the fiscal stance the government is adopting tends to be contractionary. To return to surplus within four years and create a surplus of $7.4 billion in 2020-2021, government adopts the contractionary policy to reduce the deficit and increase the surplus. And another reason for adopting contractionary policy is to raise the economic growth from 2.75% (2017-18) to 3.0% (2018-19). The federal government also starts to pay attention to globalization, small business owners and areas where technological change happens. The four main things this budget choose to focus on are: growing