1. Major Goals of the 2009-10 Federal Budget

2. Goal 1: Boost the level of aggregate demand Economic Security Strategy and Nation Building and Jobs Plan Cash hand outs +public investment (encourage consumption and investment)

3. Goal 2: Minimise the increase in unemployment A recession generally prompts a rise in unemployment levels  loss of job related skills for the unemployed  rise in structural unemployment  hysteresis (the lagging of an effect behind its cause)  suggesting today’s cyclical unemployment will result in a higher rate of natural unemployment  government stimulates the economy in order to decrease cyclical unemployment rates

4. Statistics Unemployment is forecast to rise to 8.25% by 2009-10 and peak at 8.5% by 2010-11 Without any economic stimulus, the economy would have experienced unemployment at 10% by 2010-11 2011-12: domestic economy is forecast to grow at a robust 4.5%, whilst maintaining an inflation rate of 2% and 1% fall in unemployment

5. Goal 3: Boost productivity capacity Increased spending on infrastructure projects and education Improved infrastructure=  capacity constraints in the economy Improved skill level= improved productivity levels  government expenditure  government ensuring a stronger rate of economic growth, withdrawn by supply constraints, can take hold as the recession eventually fades

6. Statistics $22 billion for infrastructure projects + $43 billion on the develop of National Broadband Network $539 million, First Home Owners Boost ( $7000 to purchase existing home or $14 for a new home, until 30/9/09)

7. Goal 4: Increased spending priority Infrastructure, education and pension support National Broadband Network Building Australia Fund, investment in roads, rail and ports Increased weekly pensions of $32.49 to single pensioners and $10.13 to couple pensioners Pensioners=  MPC  consumption  aggregate demand  economic growth

8. Statistics Government spending  $324.4 billion 2008-9 to $338.2 billion 2009-10 $16 billion pension entitlements (single pensioners now earn up to $1 689 per year) $731 Paid Parental Leave, in effect from 1/1/11. In use for 18 weeks