How does the Government handle a financial crisis, if there is a process?

The main way the Australian Government prepares for, manages and responds to financial matters is through its Budget.

The Budget is the annual statement of how the government plans to collect and spend money. It consists of many financial documents which are prepared and presented to the Australian Parliament by the Treasurer.

The Treasurer works with other ministers to develop spending policies for each government department. Cabinet – the Prime Minister and ministers – approve the Budget before it is introduced into the Parliament.

The steps of the Australian federal budget.

Federal Budget process

Parliamentary Education Office (peo.gov.au)

Federal Budget process

The steps of the Australian federal budget.

Parliamentary Education Office (peo.gov.au)

Description

This diagram illustrates the development and operation of the Budget:

  1. Budget documents are prepared by the Treasurer and Treasury department.
  2. The Treasurer makes a speech to the House of Representatives to introduce the budget bills. 
  3. Members of parliament examine and debate the Budget bills.
  4. The Senate closely examines the use of the Budget throughout the year in Senate estimates committees.

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