By David Brunnstrom

BRUSSELS, Oct 8 (Reuters) - NATO will look for ways this week to bolster operations in Afghanistan and help Georgia rebuild its military, despite the prospect of spending cuts because of the global financial crisis.

Defence ministers from the 26-state alliance, who meet on Budapest on Thursday and Friday, are committed to boosting defence expenditure and improving military capabilities. They face a deepening challenge in Afghanistan and from Russia.

But NATO officials acknowledge the alliance faces a growing list of demands and tasks without having a clear idea of what funds will be available because governments have been diverting large amounts to banking-sector bailouts. "Every day we are learning something new about interventions they feel they have to make, so we don't really now what the full impact will be on state budgets," a senior U.S. official told a briefing. "But you can suppose that if governments are strapped for cash that will put pressure on how much money is available for defence and how much money is available for deployments."

The ministers will hear U.S. calls for more troops in Afghanistan, where NATO says its role is to assist the Afghan government in providing security and stability, and for funds for the long-term growth of the Afghan army.

They are also likely to discuss the need to plug shortfalls in equipment such as helicopters and will try to resolve differences over U.S. calls for a more aggressive fight against the drugs trade that fuels the Taliban insurgency.

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Seven years after the Taliban were ousted following the Sept.11 attacks on the United States, Britain's military commander and ambassador in Afghanistan have said they think the war against the Taliban cannot be won.

Washington has dismissed the comments and says it remains committed to the mission in Afghanistan.

"We will have to find ways to continue to support and strengthen that operation even knowing we will continue to face more difficult financial straights as we do," the senior U.S. official told the briefing.

Despite its $700-billion bailout plan, Washington hoped to to boost its own Afghan commitment, the official said.

U.S. defence officials said this week Washington had asked Japan and NATO allies that have refused to send troops to Afghanistan to help pay the estimated $17 billion needed to build the Afghan army to a target strength of 134,000 soldiers.

The U.S. commander of the NATO-led International Security Assistance Force in Afghanistan has also called for more troops in addition to the 50,000 he already commands.

NATO spokesman James Appathurai said financing development of the Afghan army would be "a pretty cost-effective way of addressing the security challenges" but NATO states still needed to provide more trainers, helicopters and combat troops.

The ministers will also meet Georgia's defence minister to discuss ways to help rebuild the former Soviet republic's military, devastated during the brief war with Russia in August, although Georgia is not a NATO member.

NATO's U.S. military commander wants plans drawn up to protect the alliance's newer members, some of which were in the Soviet Union and others which were members of the Soviet-led Warsaw Pact, because of Russia's resurgence.

U.S. defence officials say the proposal faces resistance from some European members worried about Moscow's response.

(Editing by Timothy Heritage)

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