2007 Federal Budget

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The 2007 Federal Budget, which was announced on the 8th of May, determines the fiscal policy plan for 2007-08. With the Budget providing an underlying cash surplus of $10.6 billion, the Federal Government’s tenth surplus has seen spending in a number of key sectors such as education, health/aged care and lower income earners. Ultimately I do believe that the Howard Government is taking the Australian economy in the right direction, however it isn’t without its indiscretions, such as the lack of funding in aspects of sustaining our environment. It should be taken in account that the final outcome of the fiscal policy can ultimately influence the level of economic growth and prosperity, and to sustain Australia’s long-term economic expansion…show more content…
The Endowment funds will help more University students in their higher education, providing them with extra resources and research facilities to attain high levels of education. This is further substantiated by political commentators have been impressed by HEEF, such as Paul Kelly, commentator and reporter of the Weekend Enquirer of ‘The Australian’ who refers to it as a ‘symbolic brilliance’ and “a sharp break from the past, a long-term investment vehicle that chains budget to surplus to universities…” therefore the HEEF is a positive investment in education infrastructure, that will in the future help Australia’s economy. (Source: The Weekend Australian 12-5-07) However Source, Prof Mitchell B., ‘HEEF Just a scam’ suggests that the Endowment fund is seen by many as purely a facet to garner more votes, and that the Government is slowly privatising the public university system, rather than building high quality infrastructure. It is also argued that the Federal Government’s claim that it is committed to higher education is intangible given the last decade of neglect, regarding poor statistics on funding in the education sector, with the investment share standing at 48% which has dramatically been decreasing since 1996, instead the Government relying on the increasing domestic HECS (Higher Education Contribution Scheme) fees and the rapid growth in non HECS full fee enrolments. It is also argued that it is unnecessary to save money in a fund such as the

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