South Africa's Finance Minister Trevor Manuel in his 2008 budget Wednesday announced 60 billion rands (7.8 billion dollars) in support for beleaguered state electricity supplier Eskom to help alleviate a debilitating energy crisis, according to dpa. Manuel also announced the state would run a budget surplus for the second year running as a safety net against turmoil on international markets - despite criticism from the ANC's left-wing alliance partners of Manuel's fiscal prudence. The government expects to take in 650 billion rand in revenue in 2008, of which it intends to spend 631.5 billion rand. The 60 billion rand for Eskom will go towards its 300-billion-rand expansion programme, aimed at boosting generating capacity and ending the power shortages that have resulted in periodic blackouts nationwide since January. Economic growth in South Africa, which has averaged 5 per cent a year since 2003, is expected to fall to 4 per cent on the back of the energy crisis which shut down mines for several days last month as well as slower growth globally. Despite falling growth Manuel said the South African "ship is stronger" than during previous periods of global turmoil - because of the prudent policies that have earned him criticism. To ease the pressure of rising inflation, which is expected to hit 7.1 per cent this year, Manuel announced tax cuts of 10.5 billion rand benefiting low to middle-income earners and corporations. The cuts will be financed in part by higher taxes on fuel and a levy on power from non-renewable energy sources. Manuel also unveiled additional funding to boost police numbers. South Africa is trying to curb its notoriously high crime rates by 2010, the year it is scheduled to host the first football World Cup in Africa.
