This briefing suggests a framework to assist the new Government’s deliberations on the most appropriate settings for budget policy, given the current precarious stance of macroeconomic policy in Australia. For the first time in a decade fiscal policy settings underpinning the 2008-09 Budget could take the lead in of macroeconomic stabilisation, helping to restore strong and steady growth and price stability, whilst supporting national savings and the credibility and sustainability of budget settings.
