Backgrounder: U.S. Financial Crisis

    CANBERRA, Oct. 14 (Xinhua) -- The Australian government's 10.4 billion dollars (6.9 billion U.S. dollars) stimulus package to help steer the Australian economy through the global financial crisis "offers the biggest bang for the buck", Australian Treasurer Wayne Swan said here on Tuesday.

    The government loosened the budget purse strings earlier in the day, handing out 4.8 billion dollars to pensioners, 3.9 billion dollars to low and middle-income families, and 1.5 billion dollars for first-time home owners.

    The package, announced by Prime Minister Kevin Rudd as the Economic Security Strategy, will also provide 187 million dollars to create 56,000 new training schemes and formally accelerates the implementation of the government's three nation-building funds. Funding for the initiatives will come from the government's 21.7-billion-dollar surplus, which it says will remain in the black.

    Swan told reporters what was needed now was an immediate strengthening of the economy and this package gave the best bang for the buck in the here and now.

    "Of course, we do have to proceed with our long-term plans to expand budget capacities," he said.

    Swan also noted that it became clear at last weekend's meetings of world financial ministers in Washington that the world had changed and new fiscal and monetary policies were needed to counter the economic downturn.

    "I think the package is entirely responsible, and I think it's prudent," he said.