The South African Finance Minister Pravin Gordhan released his 2012-2013 budget of 1.06 trillion rands (about $137.20 billion) in the National Assembly on Wednesday.

For the first time, South Africa's annual budget exceeds one trillion rands.

615.7 billion rands of the budget is earmarked for social services, Gordhan said.

"The budget was crafted at a challenging but hopeful time, global economic uncertainty will be with us for some time, yet we have a program of economic change that can steadily roll back unemployment, poverty, and inequality," he said.

He said that reducing unemployment is the center-piece of the South African government's approach to reducing poverty, but it is not the only measure.

The minister noted that social spending comprised 58 percent of the government spending next year,up from 49 percent a decade ago.

He said the South African budget provides social grants to almost a third of the South African population of over 50 million. It also pays for largely free services at public health facilities and no-fee schools for 60 percent of South African pupils, and for housing, water, and electricity in poor communities.

He explained that the South African budget is intended to accelerate economi growth, expand investment, support economic development, and confront poverty and inequality.

Gordhan said South Africa's finances were in good health. A budget deficit of 4.6 percent of GDP is projected in 2012-2013.

He added that the South African government plans to reduce the deficit to three percent of GDP in 2014-2015, and public debt would stabilize at about 38 percent of GDP, and an expansion in infrastructure investment was one of the central priorities of South Africa's 2012 budget.