Cape Town - Government plans to transform the economy by expanding growth and job creation, while developing a more effective public service, says Finance Minister Pravin Gordhan.
Presenting his Medium Term Budget Policy Statement in Parliament today, Gordhan said a sound fiscal position has allowed government to sustain public services and to increase spending on investment aimed at raising future growth.
A Gross Domestic Product (GDP) growth of 1.5 percent is forecast for 2010, with a forecast growth of 3.2 percent in 2012.
There are signs that the economy is recovering, said the minister.
While the GDP is expected to decline by 1.9 percent for 2009, South Africa is expected to experience a growth in GDP in the last quarter of this year.
Consumer price inflation has fallen from a peak of 13.6 percent in August last year to 6.4 percent for the same period this year largely as a result of moderating food and oil prices and a stronger rand.