The Department publishes and contributes to a number of economic policy papers on behalf of the Government.
2012In March 2012 DTF commissioned a paper from Professor Henry Ergas entitled The use of countercyclical fiscal policy by State Governments. The objective of the paper was to consider the appropriate role for state governments experiencing adverse economic conditions and structural adjustment.
The paper’s overall conclusion is that fiscal stimulus -whether motivated by cyclical factors or structural change – will rarely be feasible for a State Government, and even if feasible, is unlikely to be effective.
The use of countercyclical fiscal policy by State Governments (433 KB PDF)
2011The Commonwealth Grants Commission's (CGC) approach to horizontal fiscal equalisation as applied in its Report on GST Revenue Sharing Relativities – 2011 Update has led to an unprecedented amount of GST being redistributed away from Victoria.
This report summarises some of Victoria's major concerns with the CGC methodology, suggesting that the redistribution of GST amongst the states is not being undertaken in the most efficient, effective and robust manner.
Victoria’s response to the CGC 2011 update of GST relativities (770 KB PDF) | (658 KB DOC)
2010This paper presents the results of an economic analysis of the impacts on the national and Victorian economies of the medium to long term effects of government infrastructure projects in Victoria.
Under the right conditions, it is possible for infrastructure projects to be self-funding? This analysis is a continuation of the DTF paper, Employment effects during the construction phase of government infrastructure projects in Victoria, completed in September 2009 (available below).
Can infrastructure pay for itself? An analysis of government funded construction in Victoria (768 kb PDF) | (943 kb Word)
Summary of the long-term impacts of public infrastructure investment (315 kb PDF) | (286 kb Word)