Federal budget 2007-2008 (1 Viewer)

[nayfin]

Hi i am having problems understanding the budget and would be very appreciative if someone could give me a actual explanantion to what the aim of the budget is , i just cant see what it achieves so if you could tell me the aim of the actual budget i would thank you for thank , cheers nayfin

 

[nayfin]

yeah ive read all the information but im just curious on what the actual aim of the budget is this year as i really cant work it out i dont read budgets much ahah and just wanna know the aim the government is trying to meet

 

[williamc]

I think as compared to last year's surplus its mildy expansionary ( in the surplus is smaller than last years {correct if wrong})

The aim of the mildly expansionary budget is to to help stronger levels of economic growth through increased levels of AD (consumption and investments). This coupled with interest rate rises (monetary) helps keep inflation down at the same time whilst in search of higher levels of economic growth.

Main aim of budget is to assist economic growth in the short to meduim term.

 

[Vicly]

Tax cuts of over $27 billion if I recall correctly, which can't be good for inflation, especially with the most recent tightening of monetary policy by .25% to 6.5%.

 

[forevaunited]

Hmm i think its actually something like $31.5bn in personal tax cuts over 4 years . . . and while we are talking about that could someone explain what the "over four years" bit is about?

I've never really thought about that, ive just written it in essays, but how do you actually phase something like tax cuts in over four years?

 

[Sparcod]

I've never really thought about that, ive just written it in essays, but how do you actually phase something like tax cuts in over four years?

They are projections for future spending/earnings over four years and of course tax cuts come bit by bit.
The government surely calculates what it has to do over the next few years rather than for the coming year.