FINANCE Minister Pravin Gordhan has won praise from labour, opposition parties and business for his medium-term Budget policy statement.

The MTBPS is an adjustment of the original three-year budget that the Finance Ministry makes before the presentation of the next budget.

Yesterday Gordhan revealed that the government plans to save R27billion over the next three years by cutting costs.

Gordhan said belt tightening could see both national and provincial government saving R14,5billion and R12,6billion, respectively, by the 2012-13 financial year.

He gave the R97billion spent last year by national and provincial departments on procurement and travel as an example of how savings can be achieved.

State departments are also urged to cut their collective salary bill for part-time and contract workers - estimated at R400million this year - by 20percent, thereby saving R80million.

The Ministerial Handbook giving ministers generous car allowances of up to R1million is also to be reviewed.

Cosatu general secretary Zwelinzima Vavi praised Gordhan for being willing to borrow money and run a deficit, which allowed more money to be set aside.

ID MP Lance Greyling praised Gordhan for uncovering billions of rands of wasteful government expenditure.

Azapo leader Mosibudi Mangena also welcomed Gordhan's "attempt to create employment for as many people as possible".