Australia’s 2014 Federal Budget Analysis Report
Order Description
Business Report Question:
The Australian Government is struggling to reduce a budget deficit of $41.8 billion (2.7% of GDP). It will implement a series of spending cuts on entitlements and the public sector. The budget will also raise revenue through a series of co – payments, indexa tion to inflation and a debt levy. In addition to the budget deficit, the Australian economy is experiencing a tapering off of the “mining boom” (2003 – 2011). Many economists attribute the decreased investment in mining to the volatility of iron ore pric es as well as the slowing down of the Chinese economy . China’s GDP growth was averaging over 10% for the last decade. However, since 2010 China’s GDP has continually been under 10%. In 2014, the International Monetary Fund (IMF) estimates China’s GDP to b e 7.5%.
• Examine how the continual slowdown of the Chinese economy will affect the Australian economy.
• Explain how the Reserve Bank of Australia (RBA) uses the interest rate to help stimulate the economy.
• Choose any 3 measures from Australia’s 2014 Federal Budget and analyze why the Federal Government implemented them to decrease the deficit.
Requirement: 1. The essay should be based on the essay outline provided. 2. Word limit: 1700 3. Illustrate analysis with table and chart 4. All the references in the essay outline must be used