Universities and students will receive an additional R17-billion over the next three years‚ making them the biggest winner in Wednesday’s medium-term budget policy statement.
The R17bn — which includes R7.6bn to universities to compensate for the fees freeze for students whose families earn less than R600‚000 a year and another R9.2bn to bolster the National Student Financial Aid Scheme (NSFAS) — follows on the allocation of the R11.2bn announced in the budget speech in February.
This makes post-school funding the second fastest-growing item in the budget over the past five years‚ after debt costs.
While the 2016 increase for NSFAS was intended in part to cover outstanding debt‚ the 2017 allocation was intended to ensure that students were better funded and that for those on the scheme‚ their full costs of study were covered.
SA now spends 1.5% of GDP on post-school training — up from 1% in 2008. However‚ most of the benefit has gone to vocational colleges and sector education training authorities (Setas).
The budget statement cautions that “a roadmap” is needed to fully finance the costs of study for poor students.
Speaking at a briefing to journalists‚ Finance Minister Pravin Gordhan said that all stakeholders were invited to participate in finding solutions.
“We need a roadmap for the future‚ but not one on the basis of ‘I will burn the next bus or else’. This is not a government that is not listening or engaging.”
The policy statement hints‚ though‚ that free higher education is not on the cards.
While university education benefits society and the economy‚ it also improves graduates’ income and prospects and they go on to become affluent citizens‚ so they should contribute a greater share to these costs‚ it says.
Universities and students are the biggest winners in Pravin Gordhan’s medium-term budget
The R17bn — which includes R7.6bn to universities to compensate for the fees freeze for students whose families earn less than R600‚000 a year and another R9.2bn to bolster the National Student Financial Aid Scheme (NSFAS) — follows on the allocation of the R11.2bn announced in the budget speech in February.
This makes post-school funding the second fastest-growing item in the budget over the past five years‚ after debt costs.
While the 2016 increase for NSFAS was intended in part to cover outstanding debt‚ the 2017 allocation was intended to ensure that students were better funded and that for those on the scheme‚ their full costs of study were covered.
SA now spends 1.5% of GDP on post-school training — up from 1% in 2008. However‚ most of the benefit has gone to vocational colleges and sector education training authorities (Setas).
The budget statement cautions that “a roadmap” is needed to fully finance the costs of study for poor students.
Speaking at a briefing to journalists‚ Finance Minister Pravin Gordhan said that all stakeholders were invited to participate in finding solutions.
“We need a roadmap for the future‚ but not one on the basis of ‘I will burn the next bus or else’. This is not a government that is not listening or engaging.”
The policy statement hints‚ though‚ that free higher education is not on the cards.
While university education benefits society and the economy‚ it also improves graduates’ income and prospects and they go on to become affluent citizens‚ so they should contribute a greater share to these costs‚ it says.
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