Finance Minister Trevor Manuel, speaking in parliament in Cape Town, said 18.2 billion rand (2.77 billion dollars, 2.15 billion euros) had been allocated for labour-based infrastructure projects as part of the government's Expanded Public Works Programme (EPWP), a project aimed at creating one million jobs within five years.

"Too many South Africans are trapped in the 'second economy,' characterised by poverty, inadequate shelter, uncertain incomes and the despair of joblesness," Manuel said.

"Our task is, simply put, to accelerate the pace of growth and job creation and extend the scope of development and empowerment."

He added: "Over the next five years 15 billion rand will be channelled to this intervention (the EPWP) in part through provincial and municipal infrastructure grants.

"These grants will receive additional allocations of 3.2 billion rand over the medium term which will be partially earmarked for labour-based public works."

According to the latest government figures, about 5.3 million people, or 31.2 percent of economically active citizens in South Africa, most of them black, do not have jobs.

Unofficial figures however, suggest that unemployment could be as high as 40 percent.

The country's HIV and AIDS epidemic is another priority for the government, notably as the United Nation's AIDS agency estimates that South Africa had 5.3 million people infected with HIV and AIDS at the end of 2002. A further 2.1 billion rand is to be allocated to fight the disease in the next three years.

A further 1.9 billion rand was earmarked for reducing South Africa's crime rate, bringing the total amount spent on safety and security to 28.7 billion rand by 2007.

South Africa will hold its third multiracial elections since the end of apartheid on April 14, with the ruling African National Congress expected to win overwhelmingly, if not with a two-thirds majority.

TERRA.WIRE