Expansionary

The government is running a deficit budget or a lower surplus budget to encourage aggregate demand and hence economic growth. Notable Expansionary Budgets:

• GFC Budget: Deficit of $54.5 billion (2009/10) - -4.2% of GDP

Neutral

The government's budget is balanced. Revenue equals expenditure and has no effect on economic growth.

Contractionary

The government is running a surplus budget or a lower deficit budget to discourage the level of aggregate demand and hence, economic growth.