Written by Keith Lee

``The Coalition’s new government budget released on the 13th May 2014 was pitched by Tony Abbott as a “necessity” to maintain budget commitments. Controversial changes such as the proposed $7 GP co-payment, the uncapping of university fees and future interest rate payments on FEE-HELP loans are indicative of just how tough the budget is. However, what is the motivation for the coalition government’s tough fiscal stance on the budget?

This was the government budget deficit. But how come the Coalition’s proposed budget is so much stricter than the previous Labor government’s? There are primarily two different budget forecasts, The Pre-Election Economic and Fiscal Outlook (PEFO), which is the earlier version released by the Labor government in August 2013. The election took place in September 2013, and then the Mid-Year Economic and Fiscal Outlook (MYEFO) was released in December 2013, by the newly-elected Coalition Government (refer to Figure A).

The Coalition government’s forecasts show a far more pessimistic outlook than the previous government (refer to Figure B). There is a large disparity between the estimated cash flows for the next four years between the PEFO and the MYEFO reflected by the $68 billion difference between the two government’s respective deficit outlooks. This has been driven by changes in key economic assumptions. The Coalition’s outlook is rather pessimistic predicting a 2.5% real GDP growth compared to the RBA’s 2.75%. There have also been pessimistic outlooks towards unemployment compared to the leading economic predictions of the IMF and OECD. While one can argue it is more optimal to ‘prepare for the worse’ and reducing spending, there have already been signs that these predictions are underrated, with the national accounts showing that the economy outperformed expectations for economic growth.

Read more at: http://www.abc.net.au/news/2014-06-04/abs-australia-national-accounts-gdp-march-quarter/5499524 http://workinglife.org.au/2014/05/13/how-joe-hockey-concocted-a-budget-emergency/ http://www.marketeconomics.com.au/2472-boiling-down-myefo-to-two-simple-variables

Posted by the EcoSoc Team.

Since week 4, the Economics Society has hosted an Academic Workshop every week to assist our Members with those notoriously difficult subjects, some of which include ECON2206 (Introductory Econometrics) and ECON2101 (Intermediate Microeconomics).

Many of you would have also heard and attended our successful Excel Workshop held last week on Tuesday.
A big thank you goes to our amazing Academic Director, Phuc Nguyen, for his great work in running the workshops.

This week: “ECON2206 Workshop PART II” will be held at the Red Centre in room 1040 – get amongst it!
Visit our Facebook page for Academic Workshop details.

Posted by the EcoSoc Team.

If workshops aren’t enough, we are also holding group study sessions every week leading up to the finals on Tuesday from 1-3pm in Goldstein G01 and Thursday from 3-5pm in the Red Centre, room 1040.

There will be an Executive ECOSOC Member present at every Study Group Session offering advice and exam tips. These Study Group Sessions are invaluable because there is a good chance that someone who has taken your course will be there to lend a hand.

So come and study individually, or as a group and use it as a great chance to discuss ideas with other students.

Posted by the EcoSoc Team.

Some of you might have started applying for internships or graduate positions and found that it's actually a long and difficult process in which you're never sure what you're supposed to write in the application or what to say at the interview.

Ecosoc is here to make life easier by running a Careers Skills Workshop on Monday next week from 2-4pm in Civil Engineering 109!

Current students who have been successful with their grad apps will be there to share their secret tips with you on how to ace the interview, write a killer resume and pass psychometric testing with flying colours. Come along for some free pizza and talk to students who have been in your shoes so next time you'll get that job you've always dreamed about.

Posted by the EcoSoc Team.