Australia Economic Development
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Australia’s prosperous economy has been largely possible due to several reforms introduced by its government at different points in time. Services sector accounts for more than 65 percent of Australia’s total GDP. Australian government allocates a significant portion of its budget to infrastructure projects and economic development.
Australian Budget 2008-09
Australia’s prosperous economy has been largely possible due to several reforms introduced by its government at different points in time. Services sector accounts for more than 65 percent of Australia’s total GDP. Australian government allocates a significant portion of its budget to infrastructure projects and economic development.
Australian Budget 2008-09
About $20 million have been allocated to Infrastructure Australia to find solutions to infrastructural problems within its nation. This amount will be paid over a four year period. Infrastructure Australia is slated to conduct a National Audit and present a report citing condition of infrastructure in Australia including water, transport, energy, and communications. Infrastructure Australia’s $20 million is expected to help in tackling problems like inflation, increase production, provide better water and energy services, and lead to better transport facilities.
Investing on infrastructure
Australian Prime Minister Kevin Rudd has allocated $4.7 billion in road, railways, and education projects. This is an attempt to not only boost their country’s infrastructure, but also curtail a rapidly developing queue of unemployed people in Australia. This has been termed by Kevin Rudd as a “nation building” infrastructure package. This package is believed to generate about 32,000 jobs in Australia.
Out of $4.7 billion, $2.5 billion would be used for new infrastructure projects. For rail infrastructure, about $1.2 billion has been alloted. Around $711 million would be utilized for road construction and development and $1.6 billion for TAFE infrastructure and “critical” university.
Would this infrastructural spending help avoid recession?
It’s difficult to predict whether this stimulus package and spending on infrastructure would help Australia stay out of economic recession, but it is expected that this package would add anything between 0.25 percent and 0.50 percent to Australia’s gross domestic product. Core idea behind this stimulus package is to boost economic activity in Australia, which is expected to lead to economic development. Preservation of jobs is what Australian government wants through increase in private sector activity.
