Cape Town – Three graphs from Treasury’s mini budget reveal the increase in budget that education receives in South Africa.
Graph 1: Average nominal growth in expenditure (2016/17 – 2019/20)
Source: Treasury
The graph shows that spending in most function groups will grow above inflation. Debt-service costs remain the fastest-growing item, but increase at a slower pace than during the previous three years, said Treasury. “The next fastest growing category is spending on post-school education and training, followed by health and social protection.”
Finance Minister Pravin Gordhan pointed to this graph on Wednesday, saying stakeholders should take this into account when debating the #feesmustfall way forward.
Graph 2: Index of budget allocations in real terms (2011/12 – 2019/20)
Source: Treasury
Referring to this graph, Treasury said that over the past five years, expenditure on post-school education and training has grown much faster than other budgets.
“Allocations have increased from 1% of GDP in 2008 to 1.5% today,” it said. “But most of this increase benefited vocational colleges, sector education and training authorities and the National Skills Fund, rather than universities.”
The mini budget proposed to accelerate the growth of spending on post-school education. “Despite fiscal constraints, subsidies to universities grow at 10.9% each year and transfers to NSFAS (National Student Financial Aid Scheme) grow at 18.5%.
Graph 3: Post-school education and training budget as share of GDP
Source: Treasury
“Building on the successful expansion of access to higher education, government acknowledges the need to correct its course and increase the number of graduates, while improving teaching and research,” it said.
“A roadmap is needed to fully finance the costs of study for students from poor and working-class families. The plan needs to consider the impact of different education interventions to maximise social and economic transformation.”
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