ECONOMICS ASSIGNMENT

Economics Assignment

Economics Assignment

Victoria Pins Budget on Property Recovery

Essence of the Story

The article was published on 8th M ay, 2013 by Leith Van Onselen ion which authors discuss the budgeting policy. The article reelected the clear picture of poor governance that discuss about the state excuses on one hand that their states is going under with weak financial performance while on the other hand they gives an assurance that while they have been re-elected all the current financial and economic problems will be resolved by them. Both Victorian government and public have taken much interest in this article because budget has direct correlation with general public.

Economic Analysis

There are the numbers of issues of economic concept and theories have been linked with this article:Victorian GDP and taxation growth of Revenue

The current government does not shows there productivity, the gross state product has grown at the slower rate. Housing market is an important as well as challenging theme for economics (Arnott, 1987). This is known that housing market affect the policies of government that target the housing market and affect on polices over target housing market. Housing market is directly affected by the governmental taxes, subsidies and the various regulation forms at the different governmental level. The affect of these policies on functioning of the housing market and the national local government is quite significant. Higher prices of property have an immediate impact on the net results from the transition through the increase of collection. The value of superannuation decrease the liability and due to the increase of property holdings in investment portfolios. The higher prices of property do results to pay higher amount of taxes and land tax revenues, while on the other hand the reduction in superannuation expenses. All these things have become the results of increase the net results from the transaction point of view. The higher transaction property volumes increase the duty of land, their receipts and leading a higher rise in resulting from the transaction.

Research on the housing market is directly affecting the governmental policies since housing technique has unique set of characters DiPasquale & Wheaton, (1996). Special housing property has contributed to emergence of the hosing economic. Spatial fixity, heterogeneity and durability as the important properties from the housing point of view in the economic modeling housing markets. Both and national government are heavily involved in the housing market. Intervention from ...