Budget for any country is not like the budget of a business which necessarily has to do with the representation of only the estimated expenses or revenues over a period of time, but is also having several implicit and explicit meanings which serve as a basis for making decisions by various stakeholders like, foreign investors, other countries, domestic industry and most importantly the citizens of the country at large. The budget helps them to understand how the country is being managed and how safe its operations are, in the current hands.
The recently declared budget of the Commonwealth Government of Australia was designed with the objective of transforming the perception of stakeholders towards the role of government in managing the economy for the people. The government reported in the budget for the fiscal 2014-2015 a deficit of $29.8 billion. This is quite less than the deficit reported in the fiscal 2013-14, which stood at, $49.9 billion. (Appendix)
Similarly, the net public debt owed by the government is reported to be $226.4 billion which stands equivalent to 13.9% of the GDP in 2014-15. (Appendix)
The Government on the onset of this budget has made it clear that there primary objective in regards to national economy is to make sure that they are able to put the nation’s finances, back to surplus. This is a welcome approach by the government which expects to be back on surplus from the decade old deficit by 2024-25. The government has proposed several spending cuts, has planned to increase the revenue by a temporary budget repair levy and confined welfare payments. This budget looks like speak much deliver less and has been thus criticised by several economists on grounds of being severely surprising. It is worth to be noted that this budget has an approach to achieve surplus but at the cost of pain on the population. The budget has various provisions which make us say so, namely
1.The government has proposed a job cut of 16500 public servants.
2.A six month waiting period for reduced dole to the young unemployed.
3.The pension age to rise to 70 from 2035 and benefits reduced.
4.Reduction in family tax benefits.
5.Higher fuel prices due to indexation of fuel subsidy, etc.
These are some of the concerns out of many more similar issues that propagate the urge of ensuring a restructuring of the budget so that the objectives of all the 3 facets of the economy i.e. the people, the corporate and the government are duly met and interests of none gets compromised.