Australian Federal Budget
Government has developed different measures through the Budget to overcome limitations in the free market economy. Thus, in the 2012-13 Federal budgets, it has in some degree successful to overcome these limitations.
Introduce Budget
The Australian Federal Budget is an official document that is presented in Parliament to the parliament by the Treasurer. Its main purpose is to reveal the governments planned expenditure and revenue for the next financial year.
Limitation
Under the free market system, some needs of the community may not be satisfied and this has then lead to limitations within the market. These limitations include the provision of goods and services, income distribution, externalities and fluctuation in the economic activity. …show more content…
It is a key consideration for government to decide which fiscal policy stance they will imply in Budget. In an expansionary policy, government aim to increase the level of economic activity by reducing revenue or increase expenditure, while in a contractionary fiscal policy aim the decrease economic activities by increasing revenue or increase expenditure
In the following financial year, Government focus of fiscal policy has shifted from expansion to contraction, by achieving a small surplus of$1.5billion. Therefore government has decided to reduce greatly especially on the business tax cuts. However there have been concerns about the' over-expected' economy, due to the fact that the non-GST revenue is $ 4.5 billion lower than forecast, thus the effectiveness of government to make the coming year a surplus will be rarely low. Moreover, the low inflation also indicates that there will be a decrease in the economic activity in the following year, if government insist for a surplus may lead insufficient support to some community group, e.g. …show more content…
These externalities can create harmful effects on the economy especially on the environment. Greenhouse gases are an example of externalities caused by the burning of fossil fuels during commercial activities. Therefore, one of the key focus areas of the government is to reduce the damage caused by these externalities.
In the coming year's budgeting, government had implied 2 new taxes: The carbon Tax which are subject to 500 largest polluter in Australia Mineral; And also the Mineral Resource Rent tax (MRRT) had apply an after-profit to mining projects . Both taxes were effective to reduce Australia's emissions of greenhouse gases that cause climate changes and increase the investment to renewable energy. Carbon taxes as it can encourage company develop policies to lower their carbon emission so to cut the cost.
However, there has been concern of the fall of economy activity due to heavy after tax in the mining industry that Australia's economy has been relying on and which will lead to the decrease of investment in the industry.
Introduce Budget
The Australian Federal Budget is an official document that is presented in Parliament to the parliament by the Treasurer. Its main purpose is to reveal the governments planned expenditure and revenue for the next financial year.
Limitation
Under the free market system, some needs of the community may not be satisfied and this has then lead to limitations within the market. These limitations include the provision of goods and services, income distribution, externalities and fluctuation in the economic activity. …show more content…
It is a key consideration for government to decide which fiscal policy stance they will imply in Budget. In an expansionary policy, government aim to increase the level of economic activity by reducing revenue or increase expenditure, while in a contractionary fiscal policy aim the decrease economic activities by increasing revenue or increase expenditure
In the following financial year, Government focus of fiscal policy has shifted from expansion to contraction, by achieving a small surplus of$1.5billion. Therefore government has decided to reduce greatly especially on the business tax cuts. However there have been concerns about the' over-expected' economy, due to the fact that the non-GST revenue is $ 4.5 billion lower than forecast, thus the effectiveness of government to make the coming year a surplus will be rarely low. Moreover, the low inflation also indicates that there will be a decrease in the economic activity in the following year, if government insist for a surplus may lead insufficient support to some community group, e.g. …show more content…
These externalities can create harmful effects on the economy especially on the environment. Greenhouse gases are an example of externalities caused by the burning of fossil fuels during commercial activities. Therefore, one of the key focus areas of the government is to reduce the damage caused by these externalities.
In the coming year's budgeting, government had implied 2 new taxes: The carbon Tax which are subject to 500 largest polluter in Australia Mineral; And also the Mineral Resource Rent tax (MRRT) had apply an after-profit to mining projects . Both taxes were effective to reduce Australia's emissions of greenhouse gases that cause climate changes and increase the investment to renewable energy. Carbon taxes as it can encourage company develop policies to lower their carbon emission so to cut the cost.
However, there has been concern of the fall of economy activity due to heavy after tax in the mining industry that Australia's economy has been relying on and which will lead to the decrease of investment in the industry.