Advising the Government on the Global Financial Crisis
The government’s response to the global financial crisis formed a significant part of Finance’s workload in 2008-09. Finance worked in collaboration with the other central agencies to examine the causes of the crisis, its implications for the economy and government finances, and options to address the negative impacts on Australia.
Given the sharp deterioration in economic conditions and the imperative to support the economy, the government announced three economic stimulus packages – the $10.4 billion Economic Security Strategy announced on 14 October 2008, the $4.7 billion Nation Building Package announced on 12 December 2008, and the $42 billion Nation Building and Jobs Plan announced on 3 February 2009. Finance’s role in relation to these packages included policy development and assessment, costings, supporting the decision-making of Ministers within tight timeframes, and taking account of rapidly changing domestic and international economic conditions.
The government also released an Updated Economic and Fiscal Outlook (UEFO) on 3 February 2009 and Finance played a key role in developing this document. The UEFO set out the government’s revised fiscal strategy and an update of its economic forecasts and key fiscal aggregates.
Finance has an ongoing oversight role for the agencies involved in delivering the government's economic stimulus packages, including monitoring the progress of those agencies in meeting their spending targets.