Without government's Aids prevention campaign, South Africa's growth rate in 2003/04 would have fallen half a per cent lower than the 1,9% it dropped to during the year, according to Treasury director-general Lesetja Kganyago.

Briefing members of Parliament's finance portfolio committee yesterday, he said initial studies by the Treasury showed the campaign had stopped the country's growth rate slowing by 0,5%.

"Our assessment was that without the comprehensive response, we would have had a growth rate that would have slowed down by half-a-per cent".

According to the 2004 Budget Review, tabled by Finance Minister Trevor Manuel on Wednesday, growth in South Africa fell from 3,6% in 2002/03, to about 1,9% in 2003/04.

About 5,3-million South Africans, out of a total population of 44,8-million, are infected with HIV, a rate higher than any other country.

To date, country's strategy to fight the disease has centred on a safe-sex campaign.

Last year, Cabinet approved a plan to roll-out antiretroviral treatment at public facilities.

In his Budget speech on Wednesday, Manuel announced that spending on fighting Aids would be boosted by R2,1-billion over the next three years.

The bulk of this will go towards the cost of the provincially-administered ARV treatment programmes.

The additional spending will bring total spending on Aids by the provinces and national government to R12,4-billion over the three years of the medium-term expenditure framework (MTEF). – Sapa.