A small budget deficit is predicted for the next few years
SA less vulnerable to external shocks
Trevor Manuel and Tito Mboweni agree to keep inflation target unchanged at 3-6%.
Growth forecast is lowered from February's 4,3% to a more modest 3,7% for 2008, and just 3% for 2009.
Headline CPI to replace CPIX as official inflation measure. It is expected that reweighted and rebased CPI will indicate a somewhat lower rate of inflation.
SA banks shielded from the international crisis, thanks to exchange controls and prudent regulation.
SA has strong financial sector and deep local capital markets. Funding from international markets has become more expensive - a year ago, South Africa was able to borrow at a spread of 0,65 percentage points above the rate of the US government, but today the spread has increased to more than four percentage points.
R170,8bn added to spending plans for the next three years, of which R60bn is earmarked for Eskom loans and R59bn for mitigating the effects of inflation on government spending programmes.
Budget provides considerable support to Eskom to finance its large investments.
Job creation has been strongest in construction, retail and financial services. In contrast, employment growth in mining, manufacturing and agriculture has been slow.
Mining exports were 8,8% lower in the first eight months of this year than the same period last year.
Public-sector investments will exceed R600bn over the next three years.
2010 World Cup on course but costs have escalated beyond their initial budget.
Tax introduced on pre-retirement withdrawals from retirement savings vehicles
