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The Federal Budget: How Much Difference Do Elections Make?
Author(s) -
Gruen F.H.
Publication year - 1985
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1985.tb00287.x
Subject(s) - economics , government (linguistics) , revenue , social security , tax policy , federal budget , tax revenue , welfare , economic policy , public economics , immigration , tax reform , political science , finance , market economy , fiscal year , philosophy , linguistics , law
This article examines the budget process as a selection of priorities and how these priorities change over time with changing economic circumstances. Labor governments spend more on health, employment creation schemes, on welfare housing but less on industry assistance and on assisted immigration. The rate of growth of expenditure on social security decreased sharply after 1975. The revenue section examines how different governments have restructured the tax system. Broadly, the McMahon government pursued mildly progressive tax policies, the Whitlam government strongly progressive tax policies. Fraser's tax policies were regressive (except for taxpayers with children), with the Hawke government's policies in this area being nearer to Whitlam than to McMahon. Grouping budgets into election, pre‐election and post‐election budgets provides interesting contrasts. In terms of current (1984–85) prices the ‘average’ election budget produces tax cuts of $2300 million and expenditure increases of around $1 600 million. The two budgets which preceded the loss of office by the two Liberal Prime Ministers produced particularly large outlay increases. The categories of outlays which show evidence of being used as election‐bait are identified.