Thursday, March 1, 2012

Fed: Defence to take priority in next months' Budget

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Fed: Defence to take priority in next months' Budget

Budget cuts may be on the cards in all areas, apart from defence and border protection-- which Treasurer PETER COSTELLO says are top priorities.

The May 14th Budget is already under pressure from coalition election promises andministers have been warned any new initiatives are unlikely to get the green light.

Mr COSTELLO says Australia's commitment to the war against terrorism, East Timor andcontinuing investment mean the government will have to be very tight in other areas.

The government is believed to have spent $320 million this year on the deployment oftroops in Afghanistan, with an extra $19 million covering the cost of intercepting asylumseekers.

Labor has warned resources are so overstretched that Australia cannot afford to jointhe United States and Britain in any military action against Iraq.

AAP RTV kmh/jtb/gel

KEYWORD: TERROR (CANBERRA)

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