Civil society on Tuesday welcomed Finance Minister Pravin Gordhan's emphasis on the creation of decent work, health, education, rural development and the fight against crime.

"We welcome... Gordhan's bold commitment that these priorities will not be compromised, even in the context of the economic crisis," the People's Budget Campaign said in a statement, reacting to the Medium-Term Budget Policy Statement.

The campaign was made up of the Congress of SA Trade Unions, SA Council of Churches and SA Non-Governmental Organisation Coalition.

It welcomed the minister's acknowledgement that in the context of declining revenue due to the economic crisis, overall public-sector borrowing would be increased to 11.8 percent of the GDP.

"This is a welcomed step that challenges the conservative macro-economic policy framework the country has been following."

However, the PBC raised concerns about the "continued failure" of medium-term resource allocation to significantly reduce income inequality, improve service delivery and resource allocation.

It welcomed the minister's statement that the government must ensure monetary policy took employment and growth into consideration, and not simply inflation. It was however critical of inflation targeting, which it claimed impacted negatively on poorer households and small businesses. It welcomed Gordhan's invitation to a public debate on the matter.

The PBC expressed reservations on the "continued waste" of public funds to bail out mismanaged public entities, such as the SABC.

"The resources wasted in supporting mismanaged public entities could be used in supporting Eskom's recapitalisation programme and save poor consumers from high electricity tariffs."

It "fully" supported moves to extend child support grants to 18-year-olds, but complained that the minister's proposals fell short of extending social grants to all unemployed South Africans.