The government has faced growing calls for more HIV/Aids treatments

Signalling a major new effort against the devastating disease, the government will spend 12.1bn rand ($1.7bn; �1.04bn) over the next three years.

This will include the national roll-out of key anti-retroviral drugs, with 1.9bn rand earmarked for the launch.

South Africa has the largest HIV/Aids caseload in the world, and the new funds come after growing criticism that the government was not doing enough.

Political will

The additional funding, compared with the estimated 3.3bn rand spent between 2001/2002 and 2003/2004, could signal a major shift in the ANC government's political will to fight Aids, analysts have said.

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Its announcement, which is expected to be given the final go-ahead at a cabinet meeting next week, also comes a few months ahead of elections marking a decade of majority rule in the country.

Professor Tom Lodge of the University of Witwatersrand said: "It's a positive signal which does suggest to me that the government is going to spend almost as much as it does on black economic empowerment.

"It's become a government priority."

With an estimated 5.3 million South Africans, or more than 12% of the population, infected with HIV/Aids, the health authorities face a daunting challenge.

They also have to catch up on perceived lost time, with health activists having long accused the government of dragging its feet, with both President Thabo Mbeki and Health Minister Manto Tshabalala-Msimang criticised for failing to grasp the seriousness of the crisis.

'No mad spending spree'

The government approved the universal anti-retroviral treatment programme in August, and ordered health officials to finalise an operational plan.

Our patients have created a number of income-generating projects to offset the cost of medical care Dr Ayanda Cengimbo, Aids doctor Photo journal of an Aids doctor Send us your stories

A spokesman for the South African treasury said: "Planning for implementation of a national anti-retroviral programme is at an advanced stage, and procurement teams are exploring mechanisms to reduce the unit cost of treatment further."

The spokesman added that 3.2bn rand was budgeted for HIV/Aids spending in 2004/2005, rising to 4.1bn rand in 2005/2006 and 4.8bn rand the year after.

Also on Wednesday, the South African Government unveiled a series of bigger budget deficits for the next few years, which it hopes will allow it to boost slow economic growth and cut high unemployment.

The mid-term budget also promised further tax cuts in 2004.

Finance Minister Trevor Manuel said: "It's necessary for the government to recognise that it has a role to play in expanding opportunities for economic growth - we believe it's the correct stance, it's expansionary."

Mr Manuel denied the policy was based on wooing the electorate.

"This is a long-term view, a considered view, not a mad spending spree," he said. "We are not trying to win votes."

The treasury also slashed its forecast for growth in the economy this year to 2.2% from 3.3%.