Budget deficit may halve - Zuma

2011-02-10 19:25

Cape Town - President Jacob Zuma says the budget deficit should fall from its current 6.7% to between 3% and 4% by 2013.

Speaking in his annual State of the Nation address on Thursday, Zuma also said government was pleased with the performance of the country's financial sector.

"It has proven to be remarkably resilient in the face of the recent financial crisis and the global economic meltdown," he said.

Zuma also said concerns about the exchange rate had been taken to heart.

"Exchange control reforms that were announced in the Medium Term Budget Policy Statement last year are being implemented. Further information will be provided by the Minister of Finance in the Budget Speech," Zuma said in his address.

  • j - 2011-02-10 21:08

    Half - Only because government is too useless to spend the money as per the budget.

  • GMecon - 2011-02-11 09:09

    I fear you may be right. Halving the government deficit by underspending on infrastructure, education and health is not a solution, but another problem. I would prefer the government deficit to remain in the medium term, with a focus on spending the allocated budgets on EFFICIENT and NECESSARY projects.

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