Australia's Economic Analysis: Budget, Spending, and Trade with China

This assignment provides an analysis of the Australian economy, focusing on the budget, government spending, and trade relations, particularly with China. The assignment identifies top spending cuts, including areas such as cultural heritage, research, and public services, as well as the largest expenditure programs like social security, defense, and education. It also highlights the significance of health expenditure and the challenges posed by increased spending in areas like health and education due to a growing population. Furthermore, it examines Australia's exposure to China's economic downturn, emphasizing China's role as a major trading partner and investor. This assignment offers insights into Australia's economic landscape, providing a comprehensive overview of its budget, spending priorities, and external economic influences.

Running head: MODULE QUESTIONS 1
Module Questions
(Author’s name)
(Institutional Affiliation)

MODULE QUESTIONS 2
1. Top ten spending cuts
 Spending on Cultural Heritage and Arts
 Commonwealth Scientific and Industrial Research
 University funding
 Assistance to states for public expenditure
 Transportation and Communication
 Recreation and Culture especially funding for SBS and ABC
 Welfare programs
 General Public service
 Housing and Community amenities
 Public order and safety
2. Top ten largest expenditure programs
 Social Security and welfare
 Defense
 General public service
 Education
 Health
 Housing and Community Amenities
 Transport and Communication
 Mining, Manufacturing, and Constriction
 Fuel and Energy
 Public order and safety

MODULE QUESTIONS 3
3. Rank of Assistance to States for Public Hospital expenditure
Expenditure for this function ranks first under Australia’s health expenses and third under
the governments total expenditure (Budget 2016-17, 2016).
4. Problem with increased spending health and school in the years 2017-19
The major challenge with increased spending for health and school is the rapidly growing
population is threatening to drive the cost of these services thereby spending on them will
significantly increase governments wage bill. The fact that the government is facing
significant budget deficits necessitates it to implement measures to reduce its wage bill.
5. Exposure of Australian Economy to China downturn
The major reason as to why the Australian economy is significantly exposed to a China
downturn is because China is Australia’s primary trading partner. In 2015, two-way trade
between the two countries stood at $150bn (Smyth, 2016). China is also a significant investor in
Australia hence a downturn in China will affect Australia.

MODULE QUESTIONS 4
References
Budget 2016-17. (2016). Retrieved September 30, 2017, from http://www.budget.gov.au/2016-
17/content/bp1/html/bp1_bs5-01.htm
Smyth, J. (2016). Australia flags China’s debt mountain as risk to stability. Retrieved September
30, 2017, from https://www.ft.com/content/8475afbe-9cc2-11e6-8324-be63473ce146?
mhq5j=e5