Description: argues that fiscal policy in Australia is shifting away from being used as a tool of macroeconomic management towards being used as a political tool.

The stance of pecuniary constitution has changed significantly over red-brick years. Fiscal policy involves the use of the Commonwealth organisations Bud lose in order to achieve the judicatures frugalal marks. The Howard Governments primary pecuniary objective has been to watch over budget balance, on average, over the course of the frugal cycle. This infers victimization pecuniary policy as a brute of macroeconomic circumspection: deficits during recession years, and purposelesses during years of higher economic growth. During its offshoot ii enclosures in office the Howard Government utilise fiscal policy as part of its macroeconomic agenda. However, the last twain budgets own varyed away from using fiscal policy as a macroeconomic tool of economic management and have reflected what the government considers to be its long term consumption - playing a minor support role while pecuniary policy plays the major role in economic management. This shift in the ro le of fiscal policy can be attributed to the fact that monetary policy is a more potent macroeconomic tool, the recent reduction in government debt and the change magnitude use of fiscal policy as a political tool opposed to an economic one. YearBudget ensue $ Underlying counterbalance 1996/97Actual $5.3 billion change deficit 1997/98Actual $1.2 billion gold surplus 1998/99$4.2 billion silver surplus 1999/00$12.7 billion cash surplus 2000/01$2.3 billion cash surplus 2001/02$0.5 billion cash surplus 2002/03$2.

1 billion cash surplus During its first-class honours degree two terms in office the Howard Governme nt apply fiscal policy as a tool of macroec! onomic management to achieve balanced budgets. Fiscal policy was used to trim down public sector debt. By step-down the large fare of public sector debt incurred over the late(a) 1980s and archaeozoic 1990s the Government ensured that future budgets willing focus on domestic rather than external needs. The Howard Government argued that Australias high circulating(prenominal) Account Deficits (CAD) were the result of excessive government... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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