PRE-ELECTION budgets always try to please every one. South African Finance Minister Trevor Manuel's last budget before this year's general election is no exception. It has met with the approval of the Chamber of Mines and the South African Chamber of Business who welcome especially the cutting of corporation tax from 35% to 30%. The Congress of South African Trade Únions (COSATU) gave more muted approval. The inclusion of the three top COSATU officials in the ANC's election list, with the probability of ministerial posts in Mbeki's first government may have made some contribution to this favourable judgement.
COSATU expressed concern with the reiteration in the budget of the need for public service cuts and the decrease in company taxation, the cost of which could be transferred to the poor in future. It also opposed the continued emphasis on exchange control liberalisation. This, of course, is a requirement of the World Bank and the IMF for their support of South Africa's economy.
Outside the gates of parliament on Budget day there were other voices. A protest organised by Jubilee 2000 called on the government not to repay debts incurred by its apartheid predecessor. Jubilee 2000 is part of an International campaign aimed at scrapping the debts of developing countries. National Organiser Brian Ashleigh said South Africa's debt stood at R45 billion Rand (R9.63 = £I): "A significant proportion of this Eye to eye: Mandela with chosen successor Mbeki, saddled with apartheid debt money is paid to organisations like the World Bank arid the International Monetary Fund, while people living in rural areas are robbed of sustainable development.
"The government was paying debts which should have been settled by the previous government. It is unable to create jobs as such a huge amount of money is used to repay the debt. Swiss and German banks, who had benefited under the previous government, should consider paying reparation to the victims of apartheid."
As the Finance Minister began his speech in the National Assembly, the protesters outside chanted "Down with apartheid debt, down".