Coalition promises $2bn for bushfire recovery as it walks back from budget surplus pledge

Scott Morrison says the final cost of the Australia fires is likely to rival the $5.6bn for cyclone Yasi and the Brisbane floods

The prime minister, Scott Morrison, has announced at least $2bn for bushfire recovery, as the government steps away from its pledge to deliver a budget surplus amid the ongoing crisis.

Warning that the fires would keep burning over the coming months, Morrison said further government funds may yet be forthcoming as the economic toll from the horror fire season continued to rise.