Current Budget (1 Viewer)

[Haku]

our current budget has a 9bn surplus, but is the stance contractionary or expensionary. and by how much does it spend extra in relation to last yrs budget.

 

[always_smile]

our current budget has a 9bn surplus, but is the stance contractionary or expensionary. and by how much does it spend extra in relation to last yrs budget.

We did a school assignment on it and the budget it moderately expansionary (I HOPE). Well my teacher did not mark it wrong. Have a look at the budget website. I hope thaT helps

 

[biscuit]

The stance is MILDLY expansionary

 

[Haku]

can u confirm that the budget is at a 9bn surplus?

and how much increased spending did this budget have over the last one, and what is the surplus in the last budget?

 

[biscuit]

i've got in my notes;

surplus $7.0bn in 04/05 to $7.4bn in 05/06

but i don't know where i got this from:/

 

[Haku]

so is that the underlying budget? cause i read the paper and the headline is like 9.2bn. wondering if that include the sale of telstra

anywayz, so the budget surplus increased, that must mean there is an increase in revenue so increase in spending right?

 

[biscuit]

Well, although the surplus increased slightly from last year- it was actually a midly expansionary budget because there was a load of increased revenue from the cyclical factors, including-

- increase in commodity prices
- improvement in ToT - highest in 50 years
- Low unemployment

 

[word.]

http://www.leadingedge.com.au/Budget_update_05.pdf

 

[dichotomy]

the fiscal outcome would have been contractionary because of a larger budget surplus than '04 (due to soarding commodity prices boosting company tax receipts) but the govt chose to reallocate the funds back to the private sector in the form of income tax cuts, hence making the fiscal outcome mildly expansionary.

 

[Pixydust*]

the budget is expansionary because when we discuss fiscal stance, we look purely at the discretionary/structural component. as far as the increase in expenditure/fall in revenue goes i think youd get by just knowing that the surplus contracted from 1.1% to 1% of GDP