The Federal Budget was clearly an election budget. When opinion polling shows that the Coalition is on top, the Prime Minister is likely to go to the polls. The big-spending (and huge deficit) budget is aimed at stimulating the economy to ensure an economic recovery. This is reflected in key items: $1.5 billion for manufacturing (much more is needed). $2 billion for research and development, backed by halving company tax on income earned and developed and registered patents to 17 per cent from July. Continuing for another 12 months the full capital write-off for approved equipment over the next year. $110 billion on infrastructure over the next decade, or $11 billion per year. $270 billion on defence over ten years, or $27 billion per year.