Professional Documents
Culture Documents
GROUP 12:
KUMAR SOUBHAV
PUROHIT
SHEPHALI
SWATI SUCHARITA DAS
SUSOVAN DWIWEDY
MACROECONOMIC SCENARIO OF
AUSTRALIA
22000
21500
21000
2000
1500
1142
1390
1000
500
0
46000
44000
41763
42000
42596
40000 39168
38000
36000
34000
2010
2011
2012
2013
2014
2015
4
3.5
3
2.5
2
1.5
1
0.5
0
3.6
2010
2.4
2011
2012
2.4
2.5
2013
2014
2.3
2015
UNEMPLOYMENT RATE
1 Australia's seasonally adjusted
unemployment rate stood at 5.6 percent
in October of 2016.
2 The jobless rate stayed at the lowest
level since September 2013, as the labor
force participation was unchanged.
INFLATION RATE
1 Consumer prices in Australia rose 1.3
percent through the year to the third
quarter of 2016 from 1.0 percent in the
threerate
month
period.
The inflation
came
above market
2 previous
consensus of a 1.1
GOVERNMENT REVENUES
Government Revenues in Australia
increased to 38090 AUD Million in October
from 24924 AUD Million in September of
2016..
Individuals and companies in Australia are
required to pay taxes or charges to all
levels of government: local, state, and
federal governments.
Income taxes are the most significant
form of taxation, collected by the federal
government through the Australian
Taxation Office. Australian GST revenue is
collected by the Federal government, and
then paid to the states under a
distribution formula determined by the
Commonwealth Grants Commission.
Maintains a relatively low tax burden in
comparison with other wealthy,
developed nations, at 25.6% of GDP in
GOVERNMENT SPENDING
Spending grew faster than GDP over the
period 2002-03 to 2012-13
While real growth in GDP slowed to 2.4
per cent annually over the period 2007-08
to 2012-13, underlying spending grew in
real terms by 3.6 per cent annually or 47
per cent faster than the annual rate of
growth of real GDP.
Social security and welfare and health
spending made up over two thirds of total
government spending.
The remaining one third was spent on
education at $28 billion (7 per cent of the
total), which included spending on higher
education and schools; general public
services including foreign aid at $26
billion (7 per cent); defence, public order
and safety at $25 billion (7 per cent);
industry and economic affairs at $22
EXPENDITURE vs REVENUE
FISCAL EXPENDITURE
Sum of government expenses, including
spending on goods and services,
investment and transfer payments like
social security and unemployment
benefits
Fiscal Expenditure in Australia averaged
13335.82 AUD Million from 1973 until
2016, reaching an all time high of
45954.00 AUD Million in June of 2012
This year government is focussing on job
creation and growth
2016-2017 budget was associated with a
mild contractionary fiscal policy as the
government attempts to rein in spending
and reduce the deficit.
GOVERNMENT DEBT
From 1979-2015:Government Budget in
Australia averaged -0.94 percent of GDP
from 1979 until 2015
in 2000: An all time high of 2.00 percent
of GDP
In 2010: A record low of -4.20 percent of
GDP
In 2015: Fiscal deficit equal to 2.40
percent of the country's Gross Domestic
Product
80 per cent of this is due to the federal
budget and its multi-billion dollar fall in
Commonwealth revenue. (net capital
investment worth $2.5 billion)
Successive falls in tax receipts have
been the "main driver" of this deficit
Government to continue pursuing a 15
per cent GST on everything where low
and middle income families
BALANCE OF PAYMENTS
BoP undermined by a narrow export
base
In 2010 and 2011:Consistent trade
surpluses due to high prices of
commodities.
In 2012 :Trade balance shifted back to
deficit due to a sharp drop in value of
commodity exports and increase in
value of imports due to AUD
depreciation.
Trade
surpluses : China, Hong Kong
Japan and New Zealand.
and
In 2015:
Trade deficits :United States,
Singapore, South Korea, Malaysia
Thailand.
PROBLEMS
Interest rates 13% (up 2%) and Unemployment
11% (unchanged), Poverty and the Gap
between the rich and poor 4% (unchanged),
High cost of living coupled with a weakened
dollar, the price of imports has risen
substantially, making goods produced overseas
more expensive for everyday Australians to
purchase.
Foreign Ownership and Investment 2% (up 1%)
and Over reliance on the Mining Industry 2%
(unchanged), too much government spending
following the end of the mining boom in
Australia.
Taxpayers' incomes and the country'stax base
will grow much slowerthan the governments
have become used to, and this could hamper
economic growth.
Excessive current account deficit, combined
with low investor confidence and the possibility