* Three-year budget plan seen conservative despite social
strains
* Lower growth to hit revenue forecasts
* Slippage expected in deficit reduction timetable
By Xola Potelwa
JOHANNESBURG, Oct 23 (Reuters) – Strikes and violence at
South African mines have piled pressure on the government to
boost social spending in its 3-year budget plan this week but
handouts may be limited by the need to keep bond investors on
board.
The violence has highlighted chronic social divides nearly
two decades after the end of white-minority rule, prompting
President Jacob Zuma to call on Wednesday for a faster roll out
of a government infrastructure plan to address the tensions.
Zuma, who faces an internal African National Congress (ANC)
leadership election in December, said workers’ frustrations had
become clearer during the protests.
But Gordhan is not expected to boost spending significantly
to tackle social tensions, though he will sympathise and express
concern about the strikes in his Budget speech.
The October budget is usually an update of how revenue and
spending has been in the eight months since the 2012/13 plan was
announced. Gordhan is unlikely to deviate too much from that.
Continued…
