S.A. budget to boost growth

Press, 28 March 1980, Page 6

S.A. budget to boost growth

NZPA-Reuter Pretoria The South African Finance Minister (Mr Owen Norwood) announced a “something for everyone" growth i Budget, and an estimated 11 per cent increase in defence spending. He told Parliament _ his| package of tax concessions,! higher pay for public servants, and the abolition of import surcharges “demonstrates to friend and foe alike that inherent strength of South Africa’s economy and the exhilarating prospects it offers of rising standards of living for all sections of its population.”

Tax concessions in Senator Norwood's budget totalled $lOOO million. Senator Norwood said pensioners, the aged,. homeowners. farmers, small businessmen. and all consumers would benefit. For blacks there would be special benefits, including better schools and homes.

The Minister said foreign exchange controls would be relaxed and that the rand, which has appreciated by 7.5 per cent against the dollar since January, last year,

should be allowed to float upwards still further if circumstances warranted. Declaring that South Africa’s preparedness must remain razor sharp. Senator Norwood announced ~ a defence estimate of $2300 million, against S2OOO million last year.

The armed forces had been authorised, if necessary, to incur commitments up to nearly $3OOO million. Senator Horwood did not go into details. Senator Horwood announced a record balance-of-J pavments surplus on current! account. last year of $3500j million, or more than double! the previous year’s figure. ! Among concessions made in the new Budget were abolition of a 7.5 per cent import surcharge and of a 10 per cent loan levy on companies and individuals. Senator Horwood said his Budget was designed to promote more rapid growth in the private sector and in the economy as a whole. The increase in Government spending was limited to 14 per cent — the. current rate of inflation.