T12021 FIN203 RESEARCH REPORT: 2000 – 2500 WORDS REPORT - INDIVIDUAL ASSESSMENT Submission requirements: One soft copy (Word .doc or .docx) of the report to be uploaded to Moodle Turnitin by 11:59...

Cover sheet
Executive Summary
The Australian economy was at its peak from 2000 and the growth rate was much higher than the world growth rate which was better than the countries like Japan and united states. The growth rate of World economy was 2.2% but the reported growth rate of Australia was 4.4%. The fiscal policy and the budget allocation were much different as compared to other economies and that was one of the reasons for the high growth rate. Most of the growth rate in the GDP and the unemployment rate increased in 2001 but reduced in 2002 eventually going down to 4.4% in 2007 which was the lowest in last two decades rising to 7.7% in 2021 after the year 1998. The government debt in terms of GDP had reduced to 9.7% in 2007 and increased to 70.2% in 2021. The government dent had kept on increasing with increase in GDP assisting in increasing GDP Per capita income. (G Debelle, 2020, P.1-18)
    Year
    GDP
    GDP per capita
    GDP growth
    Inflation rate
    Unemployment
    Government debt
    
    (in bn. US$ PPP)
    (in US$ PPP)
    (real)
    (in Percent)
    (in Percent)
    (in % of GDP)
    2000
    
    555
    
    28,998
    
    3.10%
    
    4.50%
    
    6.30%
    
    19.60%
    2001
    
    582
    
    30,023
    
    2.60%
    
    4.40%
    
    6.80%
    
    17.20%
    2002
    
    615.7
    
    31,404
    
    4.20%
    
    3.00%
    
    6.40%
    
    15.00%
    2003
    
    644.6
    
    32,510
    
    2.70%
    
    2.70%
    
    5.90%
    
    13.20%
    2004
    
    689.2
    
    34,380
    
    4.20%
    
    2.30%
    
    5.40%
    
    11.90%
    2005
    
    732.2
    
    36,047
    
    2.90%
    
    2.70%
    
    5.00%
    
    10.90%
    2006
    
    774.8
    
    37,559
    
    2.80%
    
    3.60%
    
    4.80%
    
    10.00%
    2007
    
    830.8
    
    39,531
    
    4.30%
    
    2.40%
    
    4.40%
    
    9.70%
    2008
    
    869.5
    
    40,490
    
    2.70%
    
    4.30%
    
    6.20%
    
    11.80%
    2009
    
    892.6
    
    40,824
    
    1.80%
    
    1.80%
    
    5.60%
    
    16.70%
    2010
    
    924.4
    
    41,689
    
    2.40%
    
    2.90%
    
    5.20%
    
    20.40%
    2011
    
    970.5
    
    43,090
    
    2.70%
    
    3.30%
    
    5.10%
    
    24.10%
    2012
    
    983.7
    
    42,905
    
    3.90%
    
    1.70%
    
    5.20%
    
    27.50%
    2013
    
    1,083.50
    
    46,506
    
    2.10%
    
    2.50%
    
    5.70%
    
    30.50%
    2014
    
    1,111.50
    
    47,018
    
    2.60%
    
    2.50%
    
    6.10%
    
    34.00%
    2015
    
    1,113.00
    
    46,407
    
    2.50%
    
    1.50%
    
    6.10%
    
    37.70%
    2016
    
    1,174.40
    
    48,152
    
    2.80%
    
    1.30%
    
    5.70%
    
    40.50%
    2017
    
    1,233.60
    
    49,796
    
    2.40%
    
    2.00%
    
    5.60%
    
    41.20%
    2018
    
    1,298.20
    
    51,571
    
    2.80%
    
    1.90%
    
    5.30%
    
    41.70%
    2019
    
    1,345.70
    
    52,726
    
    1.80%
    
    1.60%
    
    5.20%
    
    46.30%
    2020
    
    1,307.90
    
    50,845
    
    -1.10%
    
    0.70%
    
    6.90%
    
    60.40%
    2021
    
    1,376.30
    
    53,189
    
    3.00%
    
    1.30%
    
    7.70%
    
    70.20%
Table of Contents
    Particulars
    Page Number
    Executive Summary
    
    Introduction
    
    Fiscal position of the Australian Federal Government
    
    Australian Yield curve for Commonwealth Government Securities
    
    Impact of Fiscal Position to influence the yield curve
    
    Recommendation
    
    Conclusion
    
    References
    
Introduction
Fiscal policy of the economy of any country is the spending policy of government that directly influence the macro economic conditions of the country. The objective of fiscal policy is to improve the rate of unemployment, inflation control, manage interest rate of lending and deposits, ensure that business cycles are stabilized which will have a direct impact on the countries economy.
Fiscal Position of the Australian Federal Government from 2001-20.
The economy of Australia has been performing very strongly since 2001 where the world economy did not grow as fast as the Australian economy. The Australian economy grew at the rate of 3.8% whereas the world economy grew at the rate of 2.2%. The investment in dwellings improved from 2001 by 18.7% which contributed to the GDP to the extent of 0.9%. All the new business grew from 2.9% to 5.2% in 2001-02 which was supported by strong business profitability, lowering interest rate, exchange rate that is competitive and new private investment.
The increase in employment in 2001-02 increased by 1.1% and the average rate of unemployment was 6.6% in 2001-02 but by June it came down to 6.3%. The increase in non-farm income increased by 3.8% which remains same increase as in previous year and inflation rate remained stable between 2-3 percent. There was an increase in CPI by 2.9% on an average. The account deficit of current account remained around 3.1% of the GDP in 2001-02 which remained very much below the deficit during 1990s. In 2001, most of the strong economies were running in recession which were included in G7 which was because if industrial recession. (J. Diggle, R Brooks, 2007)
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