Cost of Iraq war to top Vietnam and Korea

Cost of Iraq war to top Vietnam and Korea

17jul06

WASHINGTON: The Iraq war is to overtake Korea and Vietnam as the second-most expensive overseas military operation in US history, with spending expected to top $US500 billion ($660 billion) by the end of the decade.

A report from the Congressional Budget Office says $US291billion has been allocated for the Iraq war, the equivalent of $US1000 for every man, woman and child in the US.

The figures were published amid intense debate in Washington over when, and how fast, the US could begin to pull out of Iraq.

The CBO examined two alternative spending projections. Under the first, more optimistic scenario, the US would maintain troop levels in Iraq at 140,000 next year but quickly begin bringing them home thereafter, with almost all its forces out by the end of 2009. This would still cost taxpayers another $US184billion from next year to 2010.

The alternative scenario is a slower drawdown and a US military presence of 40,000 over the long term. This would cost a further $US406 billion over the next decade, leaving total costs approaching $US700 billion.

Operations in Iraq have far exceeded early estimates. Lawrence Lindsey, a former White House economic adviser, was fired after predicting that the war could cost between $US100billion and $US200billion.

Congress has approved $US437billion for military operations and other costs related to the war on terror since the attacks of September 11, 2001. The combined costs of fighting terrorism "could reach $US808 billion by 2016", the report says.

Another analysis from the Congressional Research Service, which looked at how much money had been spent rather than merely authorised since the invasion began, puts the tally for Iraq at $US319 billion, with the war in Afghanistan costing a further $US88 billion.

The figures may dampen the enthusiasm generated by US President George W. Bush last week when he seized on federal budget projections as proof his tax cuts were working. He said his pledge to slash the deficit in half by 2009 was ahead of schedule.

Democrats have pointed out that the projected $US296billion deficit for this fiscal year would still be the fourth-highest ever.

But Mr Bush has already blamed the continuing deficit on the US military campaigns in Iraq and Afghanistan. "Fighting a war on terror and defending the homeland imposes great costs, and those costs have helped create budget deficits," he said.

The Australian

Ahhaaa the smell of burning money.