“The 2005/06 Budget that the Minister presented on 7 February 2005 was fashioned against the numerous challenges that were facing the nation, including, inter alia:the HIV/AIDS pandemic, the slower growth in GDP,
the high and rising rate of unemployment, heavily concentrated amongst an increasingly educated youth, the inadequate progress in diversifying the economy, the high incidence of poverty, especially amongst the rural population, the over-valued exchange rate, which was eroding the competitiveness of domestic producers, international fluc-tuations in exchange rates and mineral prices, which were making sound financial
planning and budgeting difficult, and contributing to emerging large budget deficits. In the face of those challenges, the Honourable Minister of Finance and Development Planning presented a basically balanced budget, expressing the commitment
the Government has to living within its means, at least over a medium term horizon.”
