South Africa plans to cut taxes and increase spending on AIDS and health care in its next budget, Finance Minister Trevor Manuel told Parliament Tuesday. The government also plans to increase spending on social programs, he said. "Poverty reduction is the overarching goal of South African economic and social policy," Manuel said in the budget policy statement. The budget will provide a "progressive advancement of social and economic rights," he said. The government also expects increasing revenue to allow for another round of tax reductions. Most of the annual 4.7 percent increase over the next three years will be in administration, which includes government grants, health services and the justice system. This will also include increased spending on the government's HIV program, which will receive an additional R3.3 billion (US $330 million) over the next three years, Manuel said.

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