Fed: Health could come before tax cuts in Budget

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Fed: Health could come before tax cuts in Budget

Prime Minister JOHN HOWARD has indicated health will top the domestic spending agendain next month's Budget.

Mr HOWARD says the government is determined to hand down another Budget surplus, withthe $2.1 billion forecast this year looking shaky as the cost of war in Iraq mounts.

With four weeks to go to the Budget, the expenditure review committee is finalisingplans for trimming spending and cabinet is expected to be briefed tomorrow.

The prime minister has indicated tax relief may take a back seat to Medicare changes,expected to cost $1 billion and include incentives to doctors to bulk-bill concessioncard holders outside metropolitan areas.

Mr HOWARD says the government's commitment to the maintenance of strong economic growthand to bring down another surplus Budget remains strong.

Labor and the Australian Industry Group want tax cuts for middle income families.

AAP RTV kmh/sb/jtb/rp

KEYWORD: BUDGET03 (CANBERRA)