Australia is one nation that has experienced the longest period of an uninterrupted growth for the economy
Australia is one nation that has experienced the longest period of an uninterrupted growth for the economy. It records fastest growth in the developed world and is the thirteenth largest economy in the world. Australia however has experienced a slight decline in the economic growth. The GDP growth deviated from the average growth rate. Economic growth in 2017 recorded to be 2.2 percent. The slower growth resulted from a slowdown of mining and construction sector. Investment in non-mining sector and government and consumption spending continued to be a driving force of economic growth (Groenewegen and McFarlane 2014). The federal government budget set fiscal and economic outlook for the nation. The budget includes estimate revenue and expenditure for the ongoing financial year, the budget year and for three upcoming years (budget.gov.au 2018). It summarizes economic, political and social priorities of the government and designs the strategy to achieve this outcome.
The paper evaluates Federal government budget of 2018 in Australia. The strategies prescribed in the budget are analyzed along with global and domestic economic outlook. Based on recent budget and state of the economy recommendations are given to strengthen the economic condition of Australia such that cash rate can be increased in coming years.