South Africa’s Finance Minister Trevor Manuel tabled a budget of R 417,8 billion on Wednesday, estimating revenues of R369,9 billion, leaving a deficit of N$ 48 billion. Average growth rate would be around 4.5% over the next three years, Manuel said. Education represents 18% (R82 billion) of the total budget, welfare took 17% (R72.7 billion) and health received 11% of the budget (R48,1 billion), only marginal increases from 2004.

Six billion rand will be spent to complete the land reform programme. Since 1994, the RSA government spent R 2 billion rand on land reform, which was to be completed this year. The new target is now extended to 2007. Minister Manuel allocated R4,3 billion spread over the next 3 years to combat Aids with free anti-retroviral treat-ment. Approximately 5.3 million people in South Africa suffer from Aids. Manuel further allocated R1,4 billion in support of development in Africa like peace operations, the African Union and the Panafrican Parliament. Tax relief of R6,8 billion for individuals and households was announced for people earning below R200 000 per annum. Persons earning less than R35 000 rand a year do not pay income tax. However taxes for liquor, beer and cigarettes were increased.