Definitions - Budget Flashcards
Inflation
When the price rises outweigh the price falls to deliver a sustained increase in the average price level over time. (Goal 2-3%)
Full employment
The condition in which virtually all who are able and willing to work are employed. (4.5 - 5%).
Economic growth
Any increase in the amount of national production that has occurred over time. (Goal 3 - 3.5%)
Budgetary policy
The manipulation of the level and composition of Federal Government receipts and expenditure in order to assist in the achievement of its economic and social goals for Australia.
Fiscal strategy
Involves the government laying out a plan for how it intends to meet its goal to promote economic prosperity and welfare of Australians.
Headline cash outcome
The total cash received by the Federal government less the total cash paid.
Underlying cash outcome/budget outcome
Seeks to exclude the cash flows that are included in the headline cash outcome but that do not directly impact on the economy.
Fiscal outcome
Relates to revenue that has been earnt over the relevant period less expenses that have been incurred over the time period.
Net operating outcome
A relatively new way of reporting the governments budget outcome and represents an attempt to distinguish the affects of recurrent and capital spending on the budget outcome.
Discretionary stabilisers
Deliberate policy decisions designed to change receipts or outlays in an effort to influence economic activity.
Automatic stabilisers
Changes to the budget that occur without deliberate government intervention and result from changes in the level of economic activity
Fiscal consideration
A government consolidating its finances by reducing expenditure and raising revenue in order to reduce the deficit or return the budget to surplus.
