CAPE TOWN The R43bn arms deal was not expected to negatively affect economic growth or the budget deficit over the next four years, said Finance Minister Trevor Manuel yesterday.

Replying in writing to a question tabled in Parliament by Democratic Alliance public enterprise spokeswoman Raenette Taljaard, Manuel said the affordability of the deal and its possible economic effects were assessed by a cabinet committee in 1999.

"The expenditure had been met within the planned medium term expenditure framework and the associated credit facilities form part of the government's medium term borrowing programme.

"The defence purchases accordingly are not expected to negatively affect either economic growth or the budget deficit," Manuel said.  

With acknowledgment to Linda Ensor and Business Day.