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.