Budget is pro-poor - cabinet

Cape Town - The Cabinet has backed President Jacob Zuma's view that the 2010/11 budget tabled last is week is "pro-poor".

Briefing the media on Thursday, following the Cabinet's regular fortnightly meeting on Wednesday, Minister in the Presidency Collins Chabane said suggestions that the budget "is not pro-poor are not true".

"Evidence that this budget, like previous budgets, is pro-poor can be found in the fact that significant resources have been directed to the poorest of the poor, for example social grants, health, education, human settlements and basic services," he said.

Chabane said the Cabinet welcomed data released earlier this week, indicating that the economy had exceeded expectations by growing at 3.2% compared to the expected figure of 2.6%.

This was an indication that the government, with its partners in business, labour, and the community, had responded and handled the recession appropriately and that the worst of the recession might be over.

The Cabinet was particularly pleased that important sectors in the economy, such as manufacturing, mining, and financial services, recovered well and had made significant contributions to the GDP figures.

The budget tabled by Finance Minister Pravin Gordhan would serve to strengthen the economy even further by focusing on that which would sustain and grow the economy in the short- and long-term.

"Government is committed to channelling our efforts towards developing a new growth path that will ensure that the economy grows at a higher level and creates jobs," Chabane said.

- Sapa