Federal Government Budgets and budget outcomes
Well, the budget is a annual statement that happen every year where the government uses it income and spends it on certain goals. It is funded by:
-Direct tax (the tax u here about, like taking there percentage from other people income)
-Indirect tax (this is like Goods and service tax with the 10%, also known as GST)
-Other revenue ( such as the government businesses)
There are three outcomes
Budget surplus - Revenue > Expenditure
Budget Deficit - Expenditure < Revenue
Budget Balance- Expenditure = Revenue
effects of budgetary changes on resource use, income distribution and
economic activity
Resource use- influencing resources bassicaly
Income distribution- Using taxation to distribute wealth and income, and also other stuff life social welfare
Economic activity - Using the fiscal policy to influence economic activity
methods of financing deficits
-Borrowing from the general public through treasury bonds
-Borrowing oversea (not a smart idea since it will worsen the CAD)
-Borrowing of the RBA , they can borrow money of the RBA or they can print more money to fund there expenditure
-Selling assest (e.g, selling telstra and government businesses)
using the surplus
they can pay back debt, save it, basically what ever they want, but most likly they do the right thing with the surplus
This is just a sketch of what ur suppose to know, plus if there any problem with this, someone correct me. This just gives you an idea,
