Australia: Selected Issues

February 21, 2019

Preview Citation

Format: Chicago

Australia: Selected Issues, (USA: International Monetary Fund, 2019) accessed November 5, 2024

Summary

This Selected Issues paper evaluates Australia’s experience with its principles-based fiscal framework. A key contribution of the paper is an evaluation of whether the medium-term budget balance anchor remains suitable in the post-Global Financial Crisis (GFC) economic environment. This paper analyzes the medium-term fiscal strategy (MTFS) in the context of the principles underlying the fiscal framework and offers suggestions for reinforcement. Comparing the alternative and current fiscal policy toolkits under a downside scenario demonstrates possible improvements to fiscal outcomes. The evaluation outlines that the operational principles of the MTFS have been consistent with the broad principles for sound fiscal policy laid out in the Charter, although implementation has involved difficult trade-offs. Options to deal with the treatment of debt, its accountability framework and its fiscal policy toolkit should help strengthen the statement and implementation of Australia’s fiscal strategy and reinforce its fiscal framework in the current and prospective economic environment.

Subject: Budget planning and preparation, Business cycles, Economic growth, Fiscal governance, Fiscal policy, Personal income tax, Public financial management (PFM), Taxes

Keywords: Australia, Budget planning and preparation, Business cycles, Country, CR, Fiscal governance, Global, Government, Government size, ISCR, Net assets position, New Zealand government, Personal income tax, Share of the economy, State budget, State priority

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/056
Stock No:

1AUSEA2019009
ISBN:

9781484399033
ISSN:

1934-7685

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