The South African government expects the country's economy to grow by 2.3% this year, helped by the football World Cup in the summer.
The prediction of a return to economic expansion after last year's recession was given by Finance Minister Pravin Gordhan as he delivered the budget. He expects the World Cup to add 0.5% to the country's 2010 economic growth, led by visiting football fans' spending.
Mr Gordhan added there would be a new effort to boost youth employment.
The budget comes as South Africa is mired in an overall unemployment rate of about 25%, and an increasing gap between the rich and poor.
Mr Gordham said the government aimed to reduce its budget deficit in the medium term, but its immediate focus was on helping the continuing economic recovery. He also pledged to maintain a grip on inflation, and said there would be no moves to fix the price of the rand.
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