2008-2009 Budget Report
1. An outline of the aim and purpose of a budget in general.
A budget is a summary or plan of intended income and expenditures of a particular body. It is a document that demonstrates a body’s i.e. Government's planned financial performance and the framework it intends to conduct its operations in the forthcoming financial year.
The federal government obtains a sum of money, to which it has to allocate to the various needs and wants of our community. The major needs of our community consist largely of health, education, welfare, defence, environment and transport.
The budget also has to take into account income (i.e. income and business tax, GST) and whether or not to run a budget deficit or budget surplus, while considering reserves or savings. A budget deficit occurs when the government spends more money than it takes in. The opposite of a budget deficit is a budget surplus.
With relation to the economic problem the budget intends to satisfy the greatest amount of wants and needs possible from its limited recourses.
N.B: with regards to this year’s federal budget issues of particular importance were that of inflation and interest rates, decreasing inequality between the wealthy and “working class” families,
1. Main points and issues contained in this year’s budget.
In a time of somewhat economic uncertainty, particularly with regards to the international market and current inflationary pressures, the Labor conservative initiative was a necessary one.
The first Rudd Swan Labor budget stated three key principals;
i. Providing a $55 billion Working Families Support Package, which rewards families for their hard work and helps them cope with the rising costs of living;
ii. Meeting its commitments in areas including education, health, infrastructure, climate change and the environment, and defence; and
iii. Investing in the future by establishing three nation building...