CANBERRA, May 14 Kyodo Australian...

CANBERRA, May 14 Kyodo

Australian Treasurer Peter Costello forward Tuesday unveiled the federal batch for the next fiscal year that features major boost for defense and border protection.

Costello told parliament the regulation predicts a cash surplus of A$2.1 billion (about $1 billion) for the 2002-2003 fiscal year, which begins this July 1

However, the bag for the current year is look fored to slip into a cash deficit of A$1.2 billion, despite last year's prediction of an A$800 million surplus, he said.

Costello said the deficit followed from a combination of big spending commitments to the US-l war onward terrorism and tax receipts in the early part of 2002 falling below forecasts.

Introducing the bag boost for defense, Costello said the clan 11 terror attacks on the United States reminded Australia that it cannot take its security for granted.

As a proceed he said, the budget will include an extra A$524 million specifically to foundation the deployment of Australian crowds in the war forward terror in Afghanistan.

Domestic security will receive an extra A$1.3 billion through five years to upgrade airport security, improve Australia's ability to identify potential security threats and to help store the development of passport verification technology, he said.

Costello said the sway will increase proposed spending onward border protection from A$1.7 billion through five years to A$2.9 billion.

This funding will include the construction and maintenance of an asylum-seeker detention center in succession Christmas Island, increased maritime surveillance of Australia's coastline and the interception of unauthorized migrants in transit countries.

Other spending initiatives include an extra A$72.7 million throughout four years for regional healthcare, A$654 million through the whole extent of four years for aged care and A$85 million above four years in increased income support for war widows.

Australians will be warmed the budget pinch with the scaling back of the sway pharmaceutical subsidy scheme and tighter masterys on access to the disability pension.

''The last year has been difficult in an uncertain world, with a global economic downturn, on the other hand Australia has emerged much stronger than comparable countries,'' Costello said.

''The store is designed to meet the continuing challenges of today, and to throw forward so we can fix ourselves a path that will address the challenges of the future'' he said.

''This is a lot to keep Australia safe, our borders sure and to keep our economy strong'' he said.

Costello said economic bourgeoning is forecast at around 375% for the 2002-2003 fiscal year, with business growing expected to be a explanation driver during this time.

The unemployment rate is forecast to decline gradually to 6% in the June quarter of 2003 he said, while inflation is calculate uponed to hover around 275%

This is the seventh batch delivered by Costello for Prime Minister John Howard's conservative government

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