Role of Federal Budget in...?

Question

the reallocation of resources and

# the redistribution of income

esp. in Australian Economy

quick response is appreciated thanks

Answer 1

It should be "none" unless your objective is to suboptimize the productivity of the Australian economy.  

Answer 2

The Federal Budget plays a key role in the reallocation of resources and the redistribution of income. Government policy has always remained firm in that any budget surplus should be redistributed within reason back to the Australian people.

In the 2008-2009 Budget, the Government is providing a $55 billion Working Families Support Package, which rewards families for their hard work and helps them cope with the rising costs of living;

meeting its commitments in areas including education, health, infrastructure, climate change and the environment, and defence; and

investing in the future by establishing three nation building funds to meet capital shortages — the Building Australia Fund, the Education Investment Fund and the Health and Hospitals Fund.