South Africa is maintaining its infrastructure plans in spite of the current financial crisis in global markets, but will also spend more on tackling poverty and increasing services, according to the Treasury.

"The 2009 budget will maintain the infrastructure focus, targeting spending to alleviate backlogs in delivery of low-cost housing, water, sanitation... school buildings and health facilities," said the Treasury in a statement made in parliament.

In the near term the government has prioritised education, a strengthened health system and the fight against crime as its key spending areas over the next three years, while Eskom receives a R60bn loan over the medium term to support its capital investment programme.

The Treasury has cut its forecast for economic growth to 3.7% for 2008, down from the February prediction of 4% and last year's 5.1% expansion. It expects growth to slow further to 3% next year before recovering.