Fed: Costello says war commitment expensive

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Fed: Costello says war commitment expensive

Treasurer PETER COSTELLO says funding Australia's war commitment will be expensive,and is making it difficult to frame the coming Budget.

Mr COSTELLO says funding the operation involving 2,000 Australian troops in the US-ledwar against Iraq is the government's first priority, and will be very expensive.

He says it's difficult to make assumptions about how long the war will last, whichadds an element of uncertainty to the federal budget due in May.

At its mid-year review in November, the government forecast a surplus of $2.1 billionthis financial year and $4.9 billion in the next.

AAP RTV so/rt/jmt Q

KEYWORD: BUDGET COSTELLO (CANBERRA)