Aussie defense budget tipped for increase

CANBERRA, Australia, March 20 (UPI) -- Australia's Defense Ministry has gained approval from the government of Prime Minister John Howard for a three percent budget increase beyond 2010.

The Australian, quoting senior government sources, said the boost would be announced in May and clears the way for possible purchase of new fighter aircraft and warships.

The increase amounts to about (U.S.) $432 million annually to defense spending, which it expected at about $14.4 billion in 2010. The government is already committed to a 3 percent increase until that year.

Australia plans to spend some $8.6 billion on new Joint Strike Fighter aircraft, which are now being tested in the United States, and $4.3 billion on new warships.