South Africa's budget surplus has sheltered the country from the full impact of the US financial crisis that is taking a global toll, President Kgalema Motlanthe said on Friday.

Motlanthe, who took office last week after the ruling party forced former president Thabo Mbeki to resign, credited the government's pro-growth economic policies with helping South Africa weather inflationary pressures and the banking crisis.

"The reality is that if we had not followed that policy (of maintaining a fiscal surplus), I don't think we would have survived the current inflationary impacts," he told the weekly Mail and Guardian newspaper in an interview.

"It has also somewhat saved us from the full impact of the financial and credit crisis in the United States and other parts of the world," he said.

South Africa's budget surplus is forecast at 0.4 percent of the gross domestic product for the fiscal year ending in March.

The surplus has proved controversial, with left-leaning members of the ruling African National Congress (ANC) calling for greater social spending in a country where unemployment officially stands at 23.5 percent, but is believed to be much higher.

A former union organiser, Motlanthe said he would not be influenced by calls from the leading Cosatu labour federation to spend more of the surplus on social services.

"Cosatu's attitude toward fiscal surpluses is a matter to be debated," he said in the interview.

"The question is whether the policies they want to pursue are feasible, necessary and valid," he said.

"We all recognise that a great deal still has to be done. The fact that 12 million of our people are recipients of grants is not sustainable; for their own dignity it's much better if people have decent jobs," he added.

AFP