Social Justice Is More than a Definition - 1189 Words

While there are many words that can be defined permanently with just one meaning, Social Justice definition goes beyond what it states. The dictionary’s defines Social Justice as â€Å"the ability people have to realize their potential in the society where they live.† However, Social Justice and what it entails for people who are interested in learning about it, and practicing it would have to dig even deeper to have a better understanding. According to Christopher Merret’s Social Justice: What Is It, Why Teach It? Social Justice â€Å"can be defined in terms of a hierarchy of four ideas. First, that the foundation of a free society is the equal worth of all citizens. Second, the argument that everyone is entitled, as a right of citizenship, to be able to meet their basic needs for income, shelter, and other necessities.† He goes on with his next idea, â€Å"Third, self-respect and equal citizenship also demand opportunities and life chances. Finall y, to recognize unjust inequalities should be reduced and where possible eliminated.† Since Social Justice is more than just two words and one simple definition, it has the capability to cover many issues that concern the people in general; not only Americans, but people everywhere in the world. Issues concerning social justice are to protect those who are more vulnerable in various aspects of life. Some of the issues are poverty, immigration, racism, and government, as well as women, gay, and minority groups’ rights, amongst manyShow MoreRelatedComparing Martin Luther King Jrs Letter from a Birmingham Jail and Amata Millers The Many Faces of Social Justice1387 Words   |  6 Pagesand Amata Millers The many faces of social justice. One can interpret both of these essays as literature promoting equality and ending issues of racism. However, a thorough analysis of each work indicates that both authors advocate a difference approach in achieving what are similar ends. An examination of the authors respective works indicates that Millers methodology is more app licable to the author than Kings is. King Jr.s definition of social justice within his essay is civic equality betweenRead MoreThe Importance Of Social Justice And Inclusion916 Words   |  4 PagesIntroduction Social justice and inclusion have become important parts of the modern world, especially within the Scottish education system. They allow pupils to reach their full potential and to become fully integrated whilst at school, regardless of background or disability. However these terms are ever changing and require a lot of thought and determination to be fully fulfilled within schools. This paper will look at the importance of social justice and inclusion as well as considering differentRead MoreEssay on Platos Theory of Human Nature1029 Words   |  5 PagesPlatos Theory of Human Nature In my opinion, Socrates’ analysis of human nature is very true as it ultimately brings us his definition of justice. I agree with his theory of human nature but not his social-political theory. In order to understand Plato’s theory of human nature and his social-political theory, we must examine each one of them closely. Plato believed that no one is self-sufficient enough to live individually. Human beings are not created equally; some of us are bornRead MoreJustice Is One Of Four Cardinal Platonic Virtues Essay1298 Words   |  6 PagesJustice is one of four cardinal Platonic virtues. These virtues are said to be good by nature, and so they must be ideals that all individuals strive to demonstrate in their lives. In The Republic, Plato (through Socrates) attempts to find the definition of Justice through dialogue with his colleagues. One of his colleagues Thrasymachus proclaims that: â€Å"Justice is in the interest of the stronger.† (338c) In other words, rulers make laws from which only they reap the benefits of. Fortunately, thisRead MoreThe Soul and the Body: The Writings of Plato1766 Words   |  7 Pagesbehave the ways that they do and what it means even to just be human. Plato, one of the most famous of the ancient philosophers, was taught by another most famous philosopher, Socrates a man perhaps even better known than him. Unfortunately, Socrates was extremely critical of the social structur e of his culture as well as established beliefs and thus subject to legal consequences for his public and highly objection-able criticisms of the regime then in control. Finally, the government decided to putRead MoreThe Assumption Of Justice And Injustice980 Words   |  4 PagesI start with the assumption that justice and injustice are opposites in the sense that they are disjoint and complementary to each other, that is, something is unjust if and only if it is not just. Thrasymachus claims that â€Å"justice is in fact what is good for the stronger, whereas injustice is what is profitable and good for oneself† (344c6). This definition clearly does not satisfy our initial assumption, since a strong man acting in his own interest would be both just and unjust. Hence, we areRead MoreCrime and Punishment Essay1717 Words   |  7 Pagescrime: â€Å"the most precise and least ambiguous definition of crime is that which defines it as behaviour which is often prohibited by th e criminal code†. The extending of the definition of crime is heavily debated among sociologists and criminologists. The most notable focus on this is presented through Thorsten Sellin, a famous sociologist of his time. Sellin (1938) argued that the criminal law reflected the values of powerful interest groups rather than the moral standards found in the general populationRead MoreLegal Justice And Its Drawbacks? Essay1445 Words   |  6 PagesLegal justice and its drawbacks? The Merriam-Webster dictionary’s simple definition of justice is ‘1. The process or result of using laws to fairly judge and punish crimes and criminals. 2. A judge in a court of law’ (Merriam-Webster). This definition focuses solely on legal justice which is the common definition of justice. However, this definition leaves out social, moral/ethical, and vigilante justice. These subsections of justice are important as they relate to justice in an individual ratherRead MoreImportance Of A Global Citizen1327 Words   |  6 Pagesaround. This has become the new normal. Even in other countries, if you visit, you will see people from all over the world there as well. We will be going over some benefits of being a global citizen, some disagreements between theorists about the definition of global citizenship, two outcomes of global citizenship, two personal examples that I have with global citizenship, and finally I will go over two courses that I have taken that ha ve influenced me becoming a global citizen. Benefits of beingRead MoreDifference Between Hobbes And Rousseau1153 Words   |  5 Pages For instance, the notion of democracy as it is known today is diametrically opposed to Platos definition of democracy. One can also note the same variation, as far as equality and inequality are concerned. For the sake of this essay, the definitions provided by Hobbes and Rousseau, on the notions of equality and inequality, as well as their views on the state of nature and the idea of a social contract will be analyzed. â€Å"Nature hath made men so equal in the faculties of body and mind as

Price Of A Fast Food Restaurant - 1570 Words

Price Moe’s southwestern grill, like many other businesses, price their food using many different strategies such as value based pricing, cost based pricing and/or competition based pricing. Moe’s grill is known for their quality of food. Because of this, customers are willing to pay a higher price than they normally would when going to a typical fast food restaurant. Pricing this way is considered value based pricing. There are times when restaurants cannot just use one specific pricing, Moe’s also uses the competition based pricing method to effectively sell their product(â€Å"Moe’s Prices,† n.d.). Their competition includes Chipotle and Qudoba, these two Mexican cuisine restaurants also focus on their food quality and value. Because all†¦show more content†¦Promotion Moe’s Mexican grill is notorious for their broad span of consumers. They are liked by many different types of people and this is very important for a company, like Moe’s, that specializes in one genre of cuisine. They are only able to attract these customers by having a well devolved promotion plan. Promotion planning is one of the most important aspects of any business, because businesses are only able to thrive when their products are endorsed to many individuals. There are many ways to promote products such as the internet, social media, television, bill boards, sampling, etc. Although products are easy to promote intangible items are not easy to promote, therefore more detail goes into intangible endorsement. Moe’s is a very unique restaurant that does an amazing job at both. They are able to use other customers’ satisfaction to spread the word of their amazing southwestern cuisine. Moe’s unlike other restaurants gets its broad customer base by expanding their target audience. They allow for their employees and customers to interact with each other letting the customer decide what they want on their food while the employees may just help promote the most popular selections. Allowing for the customer to decide their own ingredients is an easy way to make sure the food being sold is exactly what the customer waned. And yet again once the customer realizes how much they enjoyed their products

Fundamentals of Leadership Mindmap Free Essays

Semiotics Symbols are a means of communication – can include authority and process. A symbol is something which signifies something else. The purpose of symbols is to convey meaning. We will write a custom essay sample on Fundamentals of Leadership Mindmap or any similar topic only for you Order Now Semiotics Symbols are a means of communication – can include authority and process. A symbol is something which signifies something else. The purpose of symbols is to convey meaning. Ideology Coherent set of ideas and their underpinning logic, which inform action, preferences. It is the framework we use to make sense of the world. It is only visible to those who can look beyond the message, it lures people into forgetting that meaning is always socially constructed. Ideology Coherent set of ideas and their underpinning logic, which inform action, preferences. It is the framework we use to make sense of the world. It is only visible to those who can look beyond the message, it lures people into forgetting that meaning is always socially constructed. Hegemony The rule or influence of one country over others. The dominance or leadership of one social group over others. Gramsci developed this 20th century Marxism – where hegemony tries to explain the control of the dominance class in capitalism. Hegemony The rule or influence of one country over others. The dominance or leadership of one social group over others. Gramsci developed this 20th century Marxism – where hegemony tries to explain the control of the dominance class in capitalism. Managerialism Organisations have more similarities than differences so the performance of all organisations can be optimised by the application of generic management skills and theory. Managerialism Organisations have more similarities than differences so the performance of all organisations can be optimised by the application of generic management skills and theory. Key points 1)Co-founder of Marxism. 2)critique against capitalism 3)communist manifesto (1848) capital (1867-94) 4)focus on alienation and exploitation of the working class Key points 1)Co-founder of Marxism. 2)critique against capitalism 3)communist manifesto (1848) capital (1867-94) 4)focus on alienation and exploitation of the working class Habermas’ contributions His major contribution is his development of a theory of rationality. He criticises industrial democracies in the west for equating humanity with economic efficiency. A possibility for community through communicative action that strives for agreement between others. The importance of ‘ideal speech’ where you are able to raise moral and political concern and defend them by rationality only. Habermas’ contributions His major contribution is his development of a theory of rationality. He criticises industrial democracies in the west for equating humanity with economic efficiency. A possibility for community through communicative action that strives for agreement between others. The importance of ‘ideal speech’ where you are able to raise moral and political concern and defend them by rationality only. Karl Marx 1818-1883 Karl Marx 1818-1883 Critique of Capitalism As a mode of production with 2 key features: goods and services produced as commodities. Individuals labour power is also a commodity and can be bought and sold in the labour market. Wage slaves – Capitalism involves free exchange rather than pressure, but must sell their labour power to a capitalist to survive. Value added – machines, tools and innovations are used to help in production, this helps to gain abnormal profits or reduce turnover times etc. however these practices are adopted by competitors and workers productivity and wages become crucial thus only labour power can add value. Fundamental basis of economical class struggle in capitalism by increasing productivity by longer working day, intensifying effort during working hours, boosting output by cost effective and labour cutting techniques. Critique of Capitalism As a mode of production with 2 key features: goods and services produced as commodities. Individuals labour power is also a commodity and can be bought and sold in the labour market. Wage slaves – Capitalism involves free exchange rather than pressure, but must sell their labour power to a capitalist to survive. Value added – machines, tools and innovations are used to help in production, this helps to gain abnormal profits or reduce turnover times etc. however these practices are adopted by competitors and workers productivity and wages become crucial thus only labour power can add value. Fundamental basis of economical class struggle in capitalism by increasing productivity by longer working day, intensifying effort during working hours, boosting output by cost effective and labour cutting techniques. Modernism Modernism Max Weber 1864-1920 Max Weber 1864-1920 Jurgen Habermas 1929 – Jurgen Habermas 1929 – Key points 1)major work – rationalisation and disenchantment associated with capitalism and modernity. 2)strong relationship between protestant morality and successful western capitalism. 3)3 different types of authority: traditional, charismatic and legal rational. )defined rationalisation 5)developed a theory of bureaucracy. Key points 1)major work – rationalisation and disenchantment associated with capitalism and modernity. 2)strong relationship between protestant morality and successful western capitalism. 3)3 different types of authority: traditional, charismatic and legal rational. 4)defined rationalisation 5)developed a theory of bureaucracy. Critical Management studies Is a movement that questions the authority and relevance if mainstream thinking and practice. Its focus is management as a pervasive institution that is entrenched within capitalist economic formations. Critical Management studies Is a movement that questions the authority and relevance if mainstream thinking and practice. Its focus is management as a pervasive institution that is entrenched within capitalist economic formations. Habermas on communication A model of communicative rationality that takes into account the effect power has on the situation and opposes the traditional idea of an objective and functionalist reason. He wanted to construct a non-oppressive, inclusive and universalist moral framework for discourse – where all speech acts are for mutual understanding. Habermas on communication A model of communicative rationality that takes into account the effect power has on the situation and opposes the traditional idea of an objective and functionalist reason. He wanted to construct a non-oppressive, inclusive and universalist moral framework for discourse – where all speech acts are for mutual understanding. Post Modernism Post Modernism Michel Foucault 1926-1984 Michel Foucault 1926-1984 Critical Theory To develop a more rational, enlightened society through a process of critical reflection. To mobilise the potentials of critical reasoning in order to question and transform oppressive features of the modern world. Critical Theory To develop a more rational, enlightened society through a process of critical reflection. To mobilise the potentials of critical reasoning in order to question and transform oppressive features of the modern world. 1979 Discipline and punish: The birth of the prison. The privatisation of property activated the privatisation of power. Compares 18th century torture and execution to 19th century prison and disciplinary prisons used- showing power. 1979 Discipline and punish: The birth of the prison. The privatisation of property activated the privatisation of power. Compares 18th century torture and execution to 19th century prison and disciplinary prisons used- showing power. Weber and Bureaucracy The iron cage – the high reliance on machine production determines our lives that threatens to confine us within an ‘iron cage’ Clear division of labour. Standards of impersonality govern interpersonal relations. People do not act as people but as a role of an office. Rules are carried out without any regard for people. Weber and Bureaucracy The iron cage – the high reliance on machine production determines our lives that threatens to confine us within an ‘iron cage’ Clear division of labour. Standards of impersonality govern interpersonal relations. People do not act as people but as a role of an office. Rules are carried out without any regard for people. Habermas and ideal speech When communication and dialogue are free of distortions an ‘ideal speech’ situation can be said to exist. To attain this lies in a specific form of knowledge, based on self- reflection. Habermas on communicative action Meaningful interaction between persons. Action that is couched in ordinary language and saying something. A way of doing something by conveying a message, establish social relationships. Express opinions and feelings and expressing self-identity. Habermas and ideal speech When communication and dialogue are free of distortions an ‘ideal speech’ situation can be said to exist. To attain this lies in a specific form of knowledge, based on self- reflection. Habermas on communicative action Meaningful interaction between persons. Action that is couched in ordinary language and saying something. A way of doing something by conveying a message, establish social relationships. Express opinions and feelings and expressing self-identity. Foucault : power and control Classical and system theory: organisations as logical, functional, impersonal passionless entities – neutral rules of efficiency and economy. Brought to life and maintained through: language, conversation and experience. Talking and arguing, reinforce structures of membership, acceptance and decision making. Political forces. Organisations as social constructions: legal and emotional ownership, membership and control. Skill, ability and learning capacity. Human frailty, willingness, passion and self-centredness. Foucault : power and control Classical and system theory: organisations as logical, functional, impersonal passionless entities – neutral rules of efficiency and economy. Brought to life and maintained through: language, conversation and experience. Talking and arguing, reinforce structures of membership, acceptance and decision making. Political forces. Organisations as social constructions: legal and emotional ownership, membership and control. Skill, ability and learning capacity. Human frailty, willingness, passion and self-centredness. Foucault and Discipline Discipline is a series of techniques of observation, training and the direction of individuals. Where one is subjected to the will of another. Foucault wanted to understand the disciplinary power that is diffused throughout society. Our reliance and acceptance of certain norms circulates through our language and politics. Foucault and Discipline Discipline is a series of techniques of observation, training and the direction of individuals. Where one is subjected to the will of another. Foucault wanted to understand the disciplinary power that is diffused throughout society. Our reliance and acceptance of certain norms circulates through our language and politics. Organisational control Organizational structures hierarchy, influence tactics such as: compliance, surveillance, technology, pay and rewards, power to set the agenda and power to execute. Organisational control Organizational structures hierarchy, influence tactics such as: compliance, surveillance, technology, pay and rewards, power to set the agenda and power to execute. Weber and Rationalisation The process by which nature, society and individual action are mastered to orientation to planning, technical procedure and rational action Weber and Rationalisation The process by which nature, society and individual action are mastered to orientation to planning, technical procedure and rational action Weber’s thoughts Spread of bureaucracy to all areas of life would imprison us in an ‘iron cage’ with no escape. It could crush the human spirit by regulating all spheres of social life. Bureaucracy has potential to suffocate and dehumanise people. Bureaucracy excludes public from decision making and participation in the production of consensus, which leads to loss of democracy. Weber’s thoughts Spread of bureaucracy to all areas of life would imprison us in an ‘iron cage’ with no escape. It could crush the human spirit by regulating all spheres of social life. Bureaucracy has potential to suffocate and dehumanise people. Bureaucracy excludes public from decision making and participation in the production of consensus, which leads to loss of democracy. The Frankfurt school (Institute of social research) ( The Frankfurt school (Institute of social research) ( Founded to interpret critique and reframe the relevance of Marxist thought for contemporary industrial society. Founded to interpret critique and reframe the relevance of Marxist thought for contemporary industrial society. They gathered together dissident Marxists – severe criticisms of capitalism who opposed Marx’s thought of economic determinism and special role of communist party. They selected parts of Marxist thought that they fitted in with the modern world – influenced especially by the failure of working class revolutions and advanced German nation. Looked at Max Weber and Sigmund Freud to fill Marx’s perceived omissions – attempt to overcome the limits of positivism, crude materialism and phenomenology. They gathered together dissident Marxists – severe criticisms of capitalism who opposed Marx’s thought of economic determinism and special role of communist party. They selected parts of Marxist thought that they fitted in with the modern world – influenced especially by the failure of working class revolutions and advanced German nation. Looked at Max Weber and Sigmund Freud to fill Marx’s perceived omissions – attempt to overcome the limits of positivism, crude materialism and phenomenology. Marx and Exploitation The exchange value of a product is determined by the quantity of labour necessary to produce it. Marx’s position is that while it is labour that determines the exchange value of commodities, the exchange of labour for wages is not reciprocally balanced. What is exchanged is labour power: the capacity to work. Marx and Exploitation The exchange value of a product is determined by the quantity of labour necessary to produce it. Marx’s position is that while it is labour that determines the exchange value of commodities, the exchange of labour for wages is not reciprocally balanced. What is exchanged is labour power: the capacity to work. Marx and alienation Marx identifies 4 types of worker alienation under capitalism: 1) self-estrangement 2) estrangement from the product of their labour. 3) Estrangement from their species being 4) estrangement from others. 1)Alienation of the worker from the work he produces, from the product of his labour – the absence of control by the producer over the product. The product reduces, rather than expresses the producer’s humanity, and sustains alienation by buttressing capitalism. )Alienation of the worker from working, from the act of producing itself – increasing division of labour. This fragments the productive process into meaningless, and ostensibly unrelated tasks such that the general orientation of labour to work is not one of the creative liberation but instrumental and forced labour. 3)Alienation of the worker from other workers or producers – turn every productive group into competitors, setting individual against individual and reducing the social relations between people to economic exchanges or commodities. ) Alienation of the worker from himself as a producer, from his or her species being – objects designed for use by humans are transformed via the capitalist mode of production into commodities that dominate humans. Marx and alienation Marx identifies 4 types of worker alienation under capitalism: 1) self-estrangement 2) estrangement from the product of their labour. 3) Estrangement from their species being 4) estrangement from others. )Alienation of the worker from the work he produces, from the product of his labour – the absence of control by the producer over the product. The product reduces, rather than expresses the producer’s humanity, and sustains alienation by buttressing capitalism. 2)Alienation of the worker from working, from the act of producing itself – increasing division of labour. This fragments the productive proces s into meaningless, and ostensibly unrelated tasks such that the general orientation of labour to work is not one of the creative liberation but instrumental and forced labour. )Alienation of the worker from other workers or producers – turn every productive group into competitors, setting individual against individual and reducing the social relations between people to economic exchanges or commodities. 4) Alienation of the worker from himself as a producer, from his or her species being – objects designed for use by humans are transformed via the capitalist mode of production into commodities that dominate humans. How to cite Fundamentals of Leadership Mindmap, Essay examples

Fiscal Policy of Australia and Effects

Question: Discuss about the Fiscal Policy of Australia Effects on Australian Economy. Answer: Every government of each nation implement a different type of macroeconomic policies to enhance its financial growth and maintain the economic balance of the country. Two different sorts of macroeconomic policies are used by each government that are known as Fiscal Policy and Monetary Policy (Wade, 2015). Fiscal policy can be better understood as the strategies used by the government of a nation to control its economic balance. It is the strategy through which the government adjusts its tax revenue and spending to influence the financial performance of the nation. John Keynes, a British Economist, first introduced the concept of Fiscal Policy (Gruen, 2015). According to the economist, the government of every nation can use it to improve the employment rates, regulate inflation in the market, and balance business inflow and outflow to develop economic performance (Morrison, 2015). The study has been conducted to observe the last five years economic growth of the nation along with the fiscal policies implemented by the Australian government in order to judge the effectiveness and efficiency of the economic reforms that are undertaken to improve the economic balance of the nation. On the other hand, the paper presents the various types of fiscal policies that are implemented by the Australian government to manage the economic indicators of the nation by controlling the supply and demand in the domestic market. In the last four years, the Australian economy has been one of the leading economies of the world with sound and stable fiscal balance that are taken by different major countries of the world. But, in the current position, the economy has been facing a downfall due to the decline in demand in the international market. In the paper, the GDP of Australia will be compared with the deficit balance of the country in order to understand the current scenario of the Australian economy. The current budget deficit of Australia is around 2.4 percent (Simes, 2013). Comp aratively, the budget deficit of the United States is around 10.6 percent of the GDP, and that of Spain is around 11.4 percent. Irrespective of the downfall in the Australian economic growth, the country holds the 13th position in the World GDP ranking that makes it one of the successful and developed economies of the world (Salvadori and Balducci, 2015). According to Morrison (2015), fiscal policy is identified as an effective economic tool used by any government to influence the financial infrastructure of the nation by utilising the government spending and taxation rates (Morrison, 2015). It is important for the government of Australia to identify a particular fiscal target by the end of the financial year after considering the current market scenario to control the average price level, unemployment rate and inflation (Poke and Wells, 2009). The effectiveness of the fiscal policy can be evident on the economic growth rate of the nation. In the case of divergence from the targeted goals by any of the above mentioned economic factors, the government of the country must make appropriate changes in the fiscal policy to control the economic growth in the future. It is important to note that the fiscal policy is used in two different ways (Morrison, 2015). Firstly, the fiscal policies are developed to achieve the desired targets by boost ing the economic performance of the nation. Secondly, it is used to control or slow down the uncontrollable economic growth of the nation that may lead to a high level of inflation in the future (Wade, 2015). Hence, it can be said that the fiscal policy is mainly used to control the aggregate supply and demand in the market by controlling the investment, consumption, government spending, and export policy of the country (Poke and Wells, 2009). Two different types of fiscal policies are used by the government of every nation to control the economic growth of the country and maintain its trade balance. The firstly and the mostly used fiscal policy is the expansionary fiscal policy. The expansionary fiscal policy is used to stimulate economic growth in the nation (Gruen, 2015). The expansionary fiscal policy is used to get relief from the recession phase. As per the expansionary method, the government spends more on subsidiary and cuts the tax rates to promote more business in the nation (Makin and Narayan, 2011). The primary idea of the expansionary fiscal policy is to put more money in the hands of the consumers to enhance the aggregate demand in the market. The high level of aggregate demand will keep the businesses boost the production and increase the availability of jobs in the labour market. On the other hand, the second technique that is used by the government of any country is the contractionary fiscal policy. The contractionary fiscal policy is mainly used to reduce the economic growth of the nation. The primary idea of contractionary fiscal policy is to control the inflation rate in the market (Simes, 2013). Long-run inflation damages the standard of living of the people which is as dangerous as a recession. In other words, the policy is used to control the aggregate demand by increasing tax rates and reducing government spending to minimise the growth of the aggregate price of commodities in the country. Hence, the Contractionary fiscal policy is rarely used by any government of a nation (Makin and Narayan, 2011). By considering the last five years, it can be seen that the government of Australia has focused on implementing a tight fiscal policy to control the international trade, unemployment and inflation rate. During the first of the last five years, the Australian government has used the fiscal policy to control its expenditure in order to increase the aggregate demand in the market (Lewis and Wallace, 2015). Furthermore, the government has been quite effective in managing the aggregate price of the commodities and maintained an inflation rate of 2 percent to 3 percent. Since 2011, an increased can be seen on the government debt to GDP rate of Australia. The government debt to GDP rate increased from 24.24 percent in the year 2011 to 36.8 percent in the year 2015 (Salvadori and Balducci, 2015). Additionally, the increase rate of government debt to GDP has negatively affected the bond yields structure and borrowing cost of the economy. It can be seen through study that the primary reason fo r the hike in the government debt to GDP is the recent decision of increase government spending and the major company taxes. On the other hand, a change has been evident in the fiscal budget of Australia during the 2012-13 budgets. It can be seen that the Australian government used a Contractionary Fiscal Policy during this phase by reducing its spending by AUS$7 billion and increasing the tax revenue by around AUS$39 billion. The contraction policy was used by the government to control the rising price of the commodities (Lewis and Wallace, 2015). The tactics of contractionary fiscal policy helped the Australian government to reduce the aggregate demand by around 2 percent. On the other hand, the inflation rate was controlled by the end of 2015 and came down to 1 percent which was a good achievement for the government of a developed nation. The Reserve Bank of Australia (RBA) and the Australian government has identified a slow rate of consumer price growth due to the sluggish economic growth. Furthermore, the tight fiscal policy of the government has forced the RBA to cut down the interest rates in order to promote businesses in the market (Farrer, 2015). On the other hand, the RBA further reduced the interest rate by the end of 2015 due to the low rate of CPI to promote trade and growth of GDP. Meanwhile, the increasing government debt to GDP has forced the Australian government to reduce its spending that has further resulted in a decline in aggregate demand in the market (Salvadori and Balducci, 2015). Hence, it can be seen that the budgetary tactics of the Australian government have worked effectively in controlling the economic balance as per the changes in different situations. Therefore, it can be said that that the tight fiscal policy of the government has successfully managed the targeted trade balance, unemplo yment rate and inflation of the Australian economy to seek economic growth in a sustainable way (Wade, 2015). By considering the current economic scenario, it can be seen that the Australian economy has been facing an uncertain downfall in its growth rate. It is expected by the finance ministry that the growth rate will remain under 3 percent until 2018. On the other hand, a rise in the inflation rate has been evident by the end of 2016 along with a rise in the unemployment rate. Hence, the government of Australia must take necessary measures in the form of changes in its fiscal policy to control the economic balance of the country. The effect of fiscal policy has been significant to the Australian economy. Predominantly, the previous five years or so, the role of fiscal policy has been crucial to recovering the economic growth, the Gross Domestic Product, the rate of inflation, unemployment rate, government spending, the balance of trade and other factors leading to the sustainable business environment (Jensen and Webster, 2014). In the current economic scenario, the fiscal policy of the Reserve Bank of Australia has targeted to stabilise the rate of inflation at 1 percent leading to price check of commodities. Alternatively, the increasing debt figure of the economy has been largely supported by the fiscal policy to control the rising debt. According to the reports of Australian Treasury, the budget deficit of Australian economy by 2020 will be reached as high as AU$ 10 billion. Therefore, thought out fiscal policy will be effective to reduce the government expenditures. Herein, the role of the RBAs economic p olicy on Australian economy has been summarised in the following section (Ryoo and Skott, 2016). The rate of inflation has been identified to check the surging pricing standards of essential commodities. Meanwhile, the fiscal policy of the RBA has aimed to achieve inflation rate to be 1 percent or below. The data released by the Australian Bureau of Statistics has shown that the inflation rate in Australian rose 1.5 percent in the last quarter of 2016 (Abs.gov.au, 2017). In September 2016, the rate of inflation recorded as 1.3 percent. The increase in inflation has been fuelled by the increasing price of transport and consumer prices leading to surging in commodity prices as well. Moreover, the rate of inflation has seemed to be hovering around 1-1.5 percent that is considerable for a developed economy such as Australia. As described in the underlying figure, the economy has maintained a staggering rate of inflation below 3 percent for the last five years. Figure: Australia Inflation Rate Source: (Abs.gov.au, 2017) The impact of fiscal policy of the RBA can be largely reflected in the Gross Domestic Product of the nation. A comparative study of the GDP of the nation since the last ten years has identified the pattern of GDP of Australia. During the global crisis scenario in 2008, Australian fiscal policy was aimed to fuel GDP growth in the country. Since then continuous rise in GDP can be noticed up to 2013. As shown in the figure given below, in 2015 the GDP recorded was worth US$1339.54 billion that is the 2.16 percent of value of the entire worlds GDP. Currently, the recent contraction in GDP growth by 0.5 percent has put the brakes on GDP estimations (Hutchens, 2016). Predictably, till 2018, the growth rate of the country will be expected to be below 3 percent. Figure: Australia Gross Domestic Product (2006-2015) Source: (Abs.gov.au, 2017) Notably, the fiscal policy applied in the year 2016 has to be altered accordingly as the outcomes are not fruitful to say the least. On the other hand, the effect of fiscal policy can be reflected in the employment market as well. During mid-2015, the rate of unemployment reached as high as 6.3 percent. Meanwhile, the RBAs fiscal policy has controlled the rate of unemployment a bit. In the December quarter of the previous year, the seasonally adjusted rate of unemployment recorded at 5.8 percent. In the long-term scenario, since 2012, the unemployment rate crept up from 5 percent to 5.8 percent. In the current situation, the Australian economy has added 13,500 employments whereas 14,700 jobless claims are added to the list (Abs.gov.au, 2017). Figure: Australia Unemployment Rate Source: (Abs.gov.au, 2017) Apart from the unemployment situation, fiscal policy has made a major impact on the balance of trade. The fiscal policy of Australia has reported to create trade surplus in November 2016. Meanwhile, AU$ 1.24 billion trade surplus has been recorded in the report beating all the expectations. In a comparative discussion, the revised data has been better than the last data recorded in October 2016 whereas the balance of trade has shown AU$ 1.12 billion trade deficit. In the underlying figure, the comparative analysis of trade balance of the economy has been presented. Notably, in November, AU$ 0.5 billion deficit of balance was estimated. Understandably, the fiscal policy has increased the exports contributing to the turnaround of trade balance (Robinson, 2016). Figure: Australia balance of Trade Source: (Abs.gov.au, 2017) Admittedly, for the first time the balance of trade has been recorded a surplus as high as this after 2014. In the discussion, the government budget deficit has been included to identify the effect of fiscal policy on a bigger perspective (Aslan et al., 2014). The data released by the Abs has stated that the government budget deficit of the Australian economy has been recorded equal to 2.4 percent of the entire GDP of the country during 2015. For a comparative study, a detail scenario of government budget for the past decade has been presented. Figure: Australia Government Budget Source: (Abs.gov.au, 2017) The above figure has shown to identify that since 2009, the government of Australia has faced significant challenges due to budget deficits. In 2010, the budget deficit of the economy was 4.2 percent to the entire GDP of the nation. Notably, in the recent five years or so, the deficit in budget has been controlled using effective fiscal policy measure. Moreover, a detail review of the government spending has been figured out in the study to evaluate the role of fiscal policy in controlling the government spending (Oliver, 2016). According to the reports, during the third quarter of 2016, the government spending of the Australia has been reduced to AU$77644 million whereas in the second quarter the expenditure of government has been recorded worth AU$77832 million (Abs.gov.au, 2017). Figure: Australia Government Spending Source: (Abs.gov.au, 2017) The representation of the government expenditure of the last five years has shown that since 2014, the spending has been continuously followed the uptrend till the second quarter of 2016. The pull back in the government spending is necessary to fill the gap of budget deficit. Currently, the fiscal policy has been largely supported to control the unproductive spending of the government. In the existing economic status, the budget deficit has been a major issue hindering the credit rating as well as growth prospects of the economy. Due to the budget deficit, the central idea of the fiscal policy has been to control the government spending directed towards the public and private infrastructure (Lane and Perotti, 2015). Also, significant tax reforms must be taken into consideration under the current fiscal policy to fill the gap of the massive budget deficit. As a result of the controlled government spending, the government has to compromise with the GDP growth, annual GDP, per capita income, inflation rate, and unemployment situation (Wade, 2015). Lack of government expenditure has limited the investment in the infrastructure leading to economic growth. In the past five years, the fiscal policy has made a significant and long-term change in the economic sustainability (Robinson, 2015). Meanwhile, the fiscal policy of the RBA has massively contributed to keeping the in flation rate down close to 1 percent. Specifically, looking at the fiscal and economic outlook of the economy, the RBA has set inflation target at 2-3 percent. Alternatively, the downgrading of credit rating from SP can create a negative impact on the economic growth (Hill, 2016). Hence, the RBA must review the current set of fiscal policy to fill the gap of the budget deficit. In order to control the increasing amount of budget deficit, the fiscal policy must put the brakes on government spending. During the period of 2015-16, a $5.5 billion budget package has been provided by the Australian government to increase the employment market as well as industrial production. The fiscal policy of Australia has maintained the growth of the economy since the past two decades or more without a single recessionary phase (Daley and Wood, 2016). In the existing financial situation, the fiscal policy must bring foreign investment so that the debt situation of the economy can be covered by a certain margin. The investigation of the Australian fiscal policy over the last five years has delivered significant role of the economic policy of the RBA and the federal government of Australia. In the past decade or so, the fiscal policy of the nation has continuously supported the employment market and commodity prices. The fiscal policy of the government has decided the federal budget status so that the government spending to the public and private sector can be made as per the regulation. Also, there are significant targets attached to the fiscal policy such as employment, inflation rate, budget deficit, the balance of trade and budgetary funding. In the recent economic context, strict fiscal policy measures must be recommended to check the government expenditure. Thus, aggregated demand can be increased to a significant order supporting job market. Most importantly, the recent threats of economic downgrading and poor fiscal and economic forecasts have created significant doubts on the economi c growth. Predominantly, specific fiscal targets of the RBA have helped to create the most effective economic policies suitable for creating jobs and control the rate of inflation. In the sluggish growth outlook, tax reforms must be included in the fiscal policy so that a large amount of debt situation can be filled. References Abs.gov.au. (2017).Australian Bureau of Statistics, Australian Government. [online] Available at: https://www.abs.gov.au/ [Accessed Feb. 2017]. Aslan, M., Buyrukoglu, S., Oz, E. and Nazlioglu, S. (2014). Does fiscal policy matter for trade balance in the OECD countries? Panel vector error correction estimation.International Journal of Trade and Global Markets, 7(4), p.271. Daley, J. and Wood, D. (2016). Fiscal Challenges for Australia: The Next Decade and Beyond.Asia the Pacific Policy Studies, 3(3), pp.475-494. Farrer, M. (2015).Unemployment in Australia rises to 6.4%, highest for 13 years, ABS figures show. [online] the Guardian. Available at: https://www.theguardian.com/business/2015/feb/12/unemployment-in-australia-rises-to-64-in-january-abs-figures-show [Accessed Feb. 2017]. Gruen, D. (2015). The Evolution of Fiscal Policy in Australia.Oxford Review of Economic Policy, 21(4), pp.618-635. Hill, R. (2016).Australia: Australian government presents 2016/2017 budget, revises upwards expected fiscal deficits. [online] www.focus-economics.com. Available at: https://www.focus-economics.com/countries/australia/news/fiscal/australian-government-presents-20162017-budget-revises-upwards [Accessed Feb. 2017]. Hutchens, G. (2016).Australian GDP: economy shrinks by 0.5% in September quarter. [online] the Guardian. Available at: https://www.theguardian.com/business/2016/dec/07/australian-economy-shrinks-by-05-in-september-quarter [Accessed Feb. 2017]. Jensen, P. and Webster, E. (2014).Patterns of trademarking activity in Australia. 1st ed. Melbourne, Vic.: Intellectual Property Research Institute of Australia. Lane, P. and Perotti, R. (2015). The trade balance and fiscal policy in the OECD.European Economic Review, 42(3-5), pp.887-895. Lewis, M. and Wallace, R. (2015).The evolution of the Australian financial system. 1st ed. Nottingham: University of Nottingham, Dept. of Economics. Makin, A. and Narayan, P. (2011). How Potent is Fiscal Policy in Australia?.Economic Papers: A journal of applied economics and policy, 30(3), pp.377-385. Morrison, S. (2015).IMF Supports Governments focus on building a stronger economy. [online] Sjm.ministers.treasury.gov.au. Available at: https://sjm.ministers.treasury.gov.au/media-release/002-2015/ [Accessed Feb. 2017]. Oliver, S. (2016).The 2016-17 Australian Budget putting popularity ahead of austerity. [online] Ampcapital.com.au. Available at: https://www.ampcapital.com.au/article-detail?alias=/olivers-insights/may-2016/the-2016-17-australian-budget [Accessed Feb. 2017]. Poke, J. and Wells, G. (2009). The Term Spread and GDP Growth in Australia.Economic Record, 85(269), pp.121-131. Robinson, M. (2015). Accrual accounting and Australian fiscal policy.Fiscal Studies, 23(2), pp.287-300. Robinson, M. (2016). Medium Term Fiscal Policy Issues and Challenges in Australia. Ryoo, S. and Skott, P. (2016). Fiscal and Monetary Policy Rules in an Unstable Economy.Metroeconomica. Salvadori, N. and Balducci, R. (2015).Innovation, unemployment and policy in the theories of growth and distribution. 1st ed. Cheltenham, UK: E. Elgar. Simes, R. (2013).Fiscal policy rules in Australia. 1st ed. Barton, A.C.T.: Chifley Research Centre. Wade, M. (2015).It's time to borrow, the IMF tells Australia. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/how-well-is-australia-managing-the-postboom-transition-20151002-gjzvhi.html [Accessed Feb. 2017]. Every government of each nation implement a different type of macroeconomic policies to enhance its financial growth and maintain the economic balance of the country. Two different sorts of macroeconomic policies are used by each government that are known as Fiscal Policy and Monetary Policy (Wade, 2015). Fiscal policy can be better understood as the strategies used by the government of a nation to control its economic balance. It is the strategy through which the government adjusts its tax revenue and spending to influence the financial performance of the nation. John Keynes, a British Economist, first introduced the concept of Fiscal Policy (Gruen, 2015). According to the economist, the government of every nation can use it to improve the employment rates, regulate inflation in the market, and balance business inflow and outflow to develop economic performance (Morrison, 2015). The study has been conducted to observe the last five years economic growth of the nation along with the fiscal policies implemented by the Australian government in order to judge the effectiveness and efficiency of the economic reforms that are undertaken to improve the economic balance of the nation. On the other hand, the paper presents the various types of fiscal policies that are implemented by the Australian government to manage the economic indicators of the nation by controlling the supply and demand in the domestic market. In the last four years, the Australian economy has been one of the leading economies of the world with sound and stable fiscal balance that are taken by different major countries of the world. But, in the current position, the economy has been facing a downfall due to the decline in demand in the international market. In the paper, the GDP of Australia will be compared with the deficit balance of the country in order to understand the current scenario of the Australian economy. The current budget deficit of Australia is around 2.4 percent (Simes, 2013). Comp aratively, the budget deficit of the United States is around 10.6 percent of the GDP, and that of Spain is around 11.4 percent. Irrespective of the downfall in the Australian economic growth, the country holds the 13th position in the World GDP ranking that makes it one of the successful and developed economies of the world (Salvadori and Balducci, 2015). According to Morrison (2015), fiscal policy is identified as an effective economic tool used by any government to influence the financial infrastructure of the nation by utilising the government spending and taxation rates (Morrison, 2015). It is important for the government of Australia to identify a particular fiscal target by the end of the financial year after considering the current market scenario to control the average price level, unemployment rate and inflation (Poke and Wells, 2009). The effectiveness of the fiscal policy can be evident on the economic growth rate of the nation. In the case of divergence from the targeted goals by any of the above mentioned economic factors, the government of the country must make appropriate changes in the fiscal policy to control the economic growth in the future. It is important to note that the fiscal policy is used in two different ways (Morrison, 2015). Firstly, the fiscal policies are developed to achieve the desired targets by boost ing the economic performance of the nation. Secondly, it is used to control or slow down the uncontrollable economic growth of the nation that may lead to a high level of inflation in the future (Wade, 2015). Hence, it can be said that the fiscal policy is mainly used to control the aggregate supply and demand in the market by controlling the investment, consumption, government spending, and export policy of the country (Poke and Wells, 2009). Two different types of fiscal policies are used by the government of every nation to control the economic growth of the country and maintain its trade balance. The firstly and the mostly used fiscal policy is the expansionary fiscal policy. The expansionary fiscal policy is used to stimulate economic growth in the nation (Gruen, 2015). The expansionary fiscal policy is used to get relief from the recession phase. As per the expansionary method, the government spends more on subsidiary and cuts the tax rates to promote more business in the nation (Makin and Narayan, 2011). The primary idea of the expansionary fiscal policy is to put more money in the hands of the consumers to enhance the aggregate demand in the market. The high level of aggregate demand will keep the businesses boost the production and increase the availability of jobs in the labour market. On the other hand, the second technique that is used by the government of any country is the contractionary fiscal policy. The contractionary fiscal policy is mainly used to reduce the economic growth of the nation. The primary idea of contractionary fiscal policy is to control the inflation rate in the market (Simes, 2013). Long-run inflation damages the standard of living of the people which is as dangerous as a recession. In other words, the policy is used to control the aggregate demand by increasing tax rates and reducing government spending to minimise the growth of the aggregate price of commodities in the country. Hence, the Contractionary fiscal policy is rarely used by any government of a nation (Makin and Narayan, 2011). By considering the last five years, it can be seen that the government of Australia has focused on implementing a tight fiscal policy to control the international trade, unemployment and inflation rate. During the first of the last five years, the Australian government has used the fiscal policy to control its expenditure in order to increase the aggregate demand in the market (Lewis and Wallace, 2015). Furthermore, the government has been quite effective in managing the aggregate price of the commodities and maintained an inflation rate of 2 percent to 3 percent. Since 2011, an increased can be seen on the government debt to GDP rate of Australia. The government debt to GDP rate increased from 24.24 percent in the year 2011 to 36.8 percent in the year 2015 (Salvadori and Balducci, 2015). Additionally, the increase rate of government debt to GDP has negatively affected the bond yields structure and borrowing cost of the economy. It can be seen through study that the primary reason fo r the hike in the government debt to GDP is the recent decision of increase government spending and the major company taxes. On the other hand, a change has been evident in the fiscal budget of Australia during the 2012-13 budgets. It can be seen that the Australian government used a Contractionary Fiscal Policy during this phase by reducing its spending by AUS$7 billion and increasing the tax revenue by around AUS$39 billion. The contraction policy was used by the government to control the rising price of the commodities (Lewis and Wallace, 2015). The tactics of contractionary fiscal policy helped the Australian government to reduce the aggregate demand by around 2 percent. On the other hand, the inflation rate was controlled by the end of 2015 and came down to 1 percent which was a good achievement for the government of a developed nation. The Reserve Bank of Australia (RBA) and the Australian government has identified a slow rate of consumer price growth due to the sluggish economic growth. Furthermore, the tight fiscal policy of the government has forced the RBA to cut down the interest rates in order to promote businesses in the market (Farrer, 2015). On the other hand, the RBA further reduced the interest rate by the end of 2015 due to the low rate of CPI to promote trade and growth of GDP. Meanwhile, the increasing government debt to GDP has forced the Australian government to reduce its spending that has further resulted in a decline in aggregate demand in the market (Salvadori and Balducci, 2015). Hence, it can be seen that the budgetary tactics of the Australian government have worked effectively in controlling the economic balance as per the changes in different situations. Therefore, it can be said that that the tight fiscal policy of the government has successfully managed the targeted trade balance, unemplo yment rate and inflation of the Australian economy to seek economic growth in a sustainable way (Wade, 2015). By considering the current economic scenario, it can be seen that the Australian economy has been facing an uncertain downfall in its growth rate. It is expected by the finance ministry that the growth rate will remain under 3 percent until 2018. On the other hand, a rise in the inflation rate has been evident by the end of 2016 along with a rise in the unemployment rate. Hence, the government of Australia must take necessary measures in the form of changes in its fiscal policy to control the economic balance of the country. The effect of fiscal policy has been significant to the Australian economy. Predominantly, the previous five years or so, the role of fiscal policy has been crucial to recovering the economic growth, the Gross Domestic Product, the rate of inflation, unemployment rate, government spending, the balance of trade and other factors leading to the sustainable business environment (Jensen and Webster, 2014). In the current economic scenario, the fiscal policy of the Reserve Bank of Australia has targeted to stabilise the rate of inflation at 1 percent leading to price check of commodities. Alternatively, the increasing debt figure of the economy has been largely supported by the fiscal policy to control the rising debt. According to the reports of Australian Treasury, the budget deficit of Australian economy by 2020 will be reached as high as AU$ 10 billion. Therefore, thought out fiscal policy will be effective to reduce the government expenditures. Herein, the role of the RBAs economic p olicy on Australian economy has been summarised in the following section (Ryoo and Skott, 2016). The rate of inflation has been identified to check the surging pricing standards of essential commodities. Meanwhile, the fiscal policy of the RBA has aimed to achieve inflation rate to be 1 percent or below. The data released by the Australian Bureau of Statistics has shown that the inflation rate in Australian rose 1.5 percent in the last quarter of 2016 (Abs.gov.au, 2017). In September 2016, the rate of inflation recorded as 1.3 percent. The increase in inflation has been fuelled by the increasing price of transport and consumer prices leading to surging in commodity prices as well. Moreover, the rate of inflation has seemed to be hovering around 1-1.5 percent that is considerable for a developed economy such as Australia. As described in the underlying figure, the economy has maintained a staggering rate of inflation below 3 percent for the last five years. Figure: Australia Inflation Rate Source: (Abs.gov.au, 2017) The impact of fiscal policy of the RBA can be largely reflected in the Gross Domestic Product of the nation. A comparative study of the GDP of the nation since the last ten years has identified the pattern of GDP of Australia. During the global crisis scenario in 2008, Australian fiscal policy was aimed to fuel GDP growth in the country. Since then continuous rise in GDP can be noticed up to 2013. As shown in the figure given below, in 2015 the GDP recorded was worth US$1339.54 billion that is the 2.16 percent of value of the entire worlds GDP. Currently, the recent contraction in GDP growth by 0.5 percent has put the brakes on GDP estimations (Hutchens, 2016). Predictably, till 2018, the growth rate of the country will be expected to be below 3 percent. Figure: Australia Gross Domestic Product (2006-2015) Source: (Abs.gov.au, 2017) Notably, the fiscal policy applied in the year 2016 has to be altered accordingly as the outcomes are not fruitful to say the least. On the other hand, the effect of fiscal policy can be reflected in the employment market as well. During mid-2015, the rate of unemployment reached as high as 6.3 percent. Meanwhile, the RBAs fiscal policy has controlled the rate of unemployment a bit. In the December quarter of the previous year, the seasonally adjusted rate of unemployment recorded at 5.8 percent. In the long-term scenario, since 2012, the unemployment rate crept up from 5 percent to 5.8 percent. In the current situation, the Australian economy has added 13,500 employments whereas 14,700 jobless claims are added to the list (Abs.gov.au, 2017). Figure: Australia Unemployment Rate Source: (Abs.gov.au, 2017) Apart from the unemployment situation, fiscal policy has made a major impact on the balance of trade. The fiscal policy of Australia has reported to create trade surplus in November 2016. Meanwhile, AU$ 1.24 billion trade surplus has been recorded in the report beating all the expectations. In a comparative discussion, the revised data has been better than the last data recorded in October 2016 whereas the balance of trade has shown AU$ 1.12 billion trade deficit. In the underlying figure, the comparative analysis of trade balance of the economy has been presented. Notably, in November, AU$ 0.5 billion deficit of balance was estimated. Understandably, the fiscal policy has increased the exports contributing to the turnaround of trade balance (Robinson, 2016). Figure: Australia balance of Trade Source: (Abs.gov.au, 2017) Admittedly, for the first time the balance of trade has been recorded a surplus as high as this after 2014. In the discussion, the government budget deficit has been included to identify the effect of fiscal policy on a bigger perspective (Aslan et al., 2014). The data released by the Abs has stated that the government budget deficit of the Australian economy has been recorded equal to 2.4 percent of the entire GDP of the country during 2015. For a comparative study, a detail scenario of government budget for the past decade has been presented. Figure: Australia Government Budget Source: (Abs.gov.au, 2017) The above figure has shown to identify that since 2009, the government of Australia has faced significant challenges due to budget deficits. In 2010, the budget deficit of the economy was 4.2 percent to the entire GDP of the nation. Notably, in the recent five years or so, the deficit in budget has been controlled using effective fiscal policy measure. Moreover, a detail review of the government spending has been figured out in the study to evaluate the role of fiscal policy in controlling the government spending (Oliver, 2016). According to the reports, during the third quarter of 2016, the government spending of the Australia has been reduced to AU$77644 million whereas in the second quarter the expenditure of government has been recorded worth AU$77832 million (Abs.gov.au, 2017). Figure: Australia Government Spending Source: (Abs.gov.au, 2017) The representation of the government expenditure of the last five years has shown that since 2014, the spending has been continuously followed the uptrend till the second quarter of 2016. The pull back in the government spending is necessary to fill the gap of budget deficit. Currently, the fiscal policy has been largely supported to control the unproductive spending of the government. In the existing economic status, the budget deficit has been a major issue hindering the credit rating as well as growth prospects of the economy. Due to the budget deficit, the central idea of the fiscal policy has been to control the government spending directed towards the public and private infrastructure (Lane and Perotti, 2015). Also, significant tax reforms must be taken into consideration under the current fiscal policy to fill the gap of the massive budget deficit. As a result of the controlled government spending, the government has to compromise with the GDP growth, annual GDP, per capita income, inflation rate, and unemployment situation (Wade, 2015). Lack of government expenditure has limited the investment in the infrastructure leading to economic growth. In the past five years, the fiscal policy has made a significant and long-term change in the economic sustainability (Robinson, 2015). Meanwhile, the fiscal policy of the RBA has massively contributed to keeping the in flation rate down close to 1 percent. Specifically, looking at the fiscal and economic outlook of the economy, the RBA has set inflation target at 2-3 percent. Alternatively, the downgrading of credit rating from SP can create a negative impact on the economic growth (Hill, 2016). Hence, the RBA must review the current set of fiscal policy to fill the gap of the budget deficit. In order to control the increasing amount of budget deficit, the fiscal policy must put the brakes on government spending. During the period of 2015-16, a $5.5 billion budget package has been provided by the Australian government to increase the employment market as well as industrial production. The fiscal policy of Australia has maintained the growth of the economy since the past two decades or more without a single recessionary phase (Daley and Wood, 2016). In the existing financial situation, the fiscal policy must bring foreign investment so that the debt situation of the economy can be covered by a certain margin. The investigation of the Australian fiscal policy over the last five years has delivered significant role of the economic policy of the RBA and the federal government of Australia. In the past decade or so, the fiscal policy of the nation has continuously supported the employment market and commodity prices. The fiscal policy of the government has decided the federal budget status so that the government spending to the public and private sector can be made as per the regulation. Also, there are significant targets attached to the fiscal policy such as employment, inflation rate, budget deficit, the balance of trade and budgetary funding. In the recent economic context, strict fiscal policy measures must be recommended to check the government expenditure. Thus, aggregated demand can be increased to a significant order supporting job market. Most importantly, the recent threats of economic downgrading and poor fiscal and economic forecasts have created significant doubts on the economi c growth. Predominantly, specific fiscal targets of the RBA have helped to create the most effective economic policies suitable for creating jobs and control the rate of inflation. In the sluggish growth outlook, tax reforms must be included in the fiscal policy so that a large amount of debt situation can be filled. References Abs.gov.au. (2017).Australian Bureau of Statistics, Australian Government. [online] Available at: https://www.abs.gov.au/ [Accessed Feb. 2017]. Aslan, M., Buyrukoglu, S., Oz, E. and Nazlioglu, S. (2014). Does fiscal policy matter for trade balance in the OECD countries? Panel vector error correction estimation.International Journal of Trade and Global Markets, 7(4), p.271. Daley, J. and Wood, D. (2016). Fiscal Challenges for Australia: The Next Decade and Beyond.Asia the Pacific Policy Studies, 3(3), pp.475-494. Farrer, M. (2015).Unemployment in Australia rises to 6.4%, highest for 13 years, ABS figures show. [online] the Guardian. Available at: https://www.theguardian.com/business/2015/feb/12/unemployment-in-australia-rises-to-64-in-january-abs-figures-show [Accessed Feb. 2017]. Gruen, D. (2015). The Evolution of Fiscal Policy in Australia.Oxford Review of Economic Policy, 21(4), pp.618-635. Hill, R. (2016).Australia: Australian government presents 2016/2017 budget, revises upwards expected fiscal deficits. [online] www.focus-economics.com. Available at: https://www.focus-economics.com/countries/australia/news/fiscal/australian-government-presents-20162017-budget-revises-upwards [Accessed Feb. 2017]. Hutchens, G. (2016).Australian GDP: economy shrinks by 0.5% in September quarter. [online] the Guardian. Available at: https://www.theguardian.com/business/2016/dec/07/australian-economy-shrinks-by-05-in-september-quarter [Accessed Feb. 2017]. Jensen, P. and Webster, E. (2014).Patterns of trademarking activity in Australia. 1st ed. Melbourne, Vic.: Intellectual Property Research Institute of Australia. Lane, P. and Perotti, R. (2015). The trade balance and fiscal policy in the OECD.European Economic Review, 42(3-5), pp.887-895. Lewis, M. and Wallace, R. (2015).The evolution of the Australian financial system. 1st ed. Nottingham: University of Nottingham, Dept. of Economics. Makin, A. and Narayan, P. (2011). How Potent is Fiscal Policy in Australia?.Economic Papers: A journal of applied economics and policy, 30(3), pp.377-385. Morrison, S. (2015).IMF Supports Governments focus on building a stronger economy. [online] Sjm.ministers.treasury.gov.au. Available at: https://sjm.ministers.treasury.gov.au/media-release/002-2015/ [Accessed Feb. 2017]. Oliver, S. (2016).The 2016-17 Australian Budget putting popularity ahead of austerity. [online] Ampcapital.com.au. Available at: https://www.ampcapital.com.au/article-detail?alias=/olivers-insights/may-2016/the-2016-17-australian-budget [Accessed Feb. 2017]. Poke, J. and Wells, G. (2009). The Term Spread and GDP Growth in Australia.Economic Record, 85(269), pp.121-131. Robinson, M. (2015). Accrual accounting and Australian fiscal policy.Fiscal Studies, 23(2), pp.287-300. Robinson, M. (2016). Medium Term Fiscal Policy Issues and Challenges in Australia. Ryoo, S. and Skott, P. (2016). Fiscal and Monetary Policy Rules in an Unstable Economy.Metroeconomica. Salvadori, N. and Balducci, R. (2015).Innovation, unemployment and policy in the theories of growth and distribution. 1st ed. Cheltenham, UK: E. Elgar. Simes, R. (2013).Fiscal policy rules in Australia. 1st ed. Barton, A.C.T.: Chifley Research Centre. Wade, M. (2015).It's time to borrow, the IMF tells Australia. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/how-well-is-australia-managing-the-postboom-transition-20151002-gjzvhi.html [Accessed Feb. 2017].