Policy aims to encourage a recovery without burdening future generations with unsustainable debt
Mining displayed the first signs of recovery, with production rising strongly in the six months to August.
Lower interest rates and falling inflation are expected over the period ahead.
Eskom tariff increases will be required to align the price of electricity with the cost of generation.
The current-account deficit is projected to increase to 5.7% in 2010.
Government needs other forms of revenue. Proposals include broadening the tax base, improving tax compliance and the introduction of new taxes.
South Africa is falling short of its commitments by failing to meet the "legitimate" service expectations of its people.
Departments need to reduce expenditure on low-priority and non-essential items. Total net savings of R14.5bn at national level and R12.6bn at provincial level have been identified over three years for prioritisation.
Cost cutting examples include catering, communication, consultants, inventory, stationery and printing, travel and subsistence, accommodation and entertainment.
An additional 22 500 police personnel to be recruited by 2012/13. Special investigators for priority crime to increase from 350 to 2 400 in same period.