Australia delays purchase of Joint Strike Fighter to balance budget The Prime Minister, Julia Gillard, was quick to promise that the cuts would not affect the needs of front-line troops, including the 1500-odd soldiers in Afghanistan. Miss Gillard has pledged to end a run of four years of deficits in a move that has been seen as an attempt to reverse her dismal standing in the polls. The Opposition has relentlessly attacked Labor as fiscally irresponsible because it has not produced a surplus budget since taking power under Kevin Rudd in 2007. However, Labor's handling of the economy - including a large-scale stimulus program - has been widely praised as helping Australia to effectively avoid the brunt of the financial crisis. The Government sought to soften the announcement of the defence cuts today by pledging that it would proceed with the country's biggest-ever capital works project, the construction of 12 new submarines. More than £130 million will be spent on an initial study to examine various options, including the possibility of refitting a European or American model. Stephen Smith, the Defence Minister, said he spoke with his US counterpart, Leon Panetta, this morning to assure him the cuts would not affect the US-Australia alliance.