Consolidated spending was set to increase an average 5.9% over the medium-term expenditure framework
19 February 2025 - 18:29
byTamar Kahn
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Finance Minister Enoch Godongwana leaves after a press conference ahead of his 2025 budget speech in Cape Town. Picture: REUTERS/Esa Alexander
Treasury had proposed giving the basic education sector some much-needed relief in the draft budget, providing an inflation-beating increase for the first time in more than five years.
Cabinet failed to sign off on Treasury’s proposed budget on Wednesday due to disagreements over its plans to raise VAT from 15% to 17%. It was an unprecedented turn of events in postapartheid SA, in which the tabling of the budget in parliament was postponed to March 12.
Consolidated spending on basic education was set to increase by an average of 5.9% over the medium-term expenditure framework. Treasury anticipated inflation would average 4.5% over the period.
Treasury was concerned about the impact of prior budget cuts on front-line services, particularly in education, said finance minister Enoch Godongwana.
“There is a threat of losing 19,000 teachers in KwaZulu-Natal,” he told reporters shortly before cabinet met to discuss the budget.
An extra R19.1bn was allocated to the basic education budget in Treasury’s proposed budget to secure teacher posts and expand early childhood development (ECD) services.
This is in line with the education department’s focus on ECD, which basic education minister Siviwe Gwarube has positioned as a crucial investment for SA’s future prosperity.
In the draft budget, consolidated spending on basic education was set to rise from a revised estimate of R325bn in 2024/25 to R350bn in 2025/26. It then increased to R369bn in 2026/27 and R386bn in 2027/28.
The draft budget included extra funding for the infrastructure education grant, including R2.3bn for the Western Cape’s rapid schools build programme.
However the proposed budget for postschool education and training was once again cut in real terms, as it was set to grow by just 4% over the medium-term expenditure framework. Expenditure was set to rise from a revised estimate of R145bn in 2024/25 to R147nb in 2025/26, before increasing to R154bn in 2026/27 and R163bn in 2027/28.
The draft budget for university infrastructure was slashed by an average of 12.5% over the medium term, falling from a revised estimate of R2.98bn in 2024/25 to R1.4bn in 2025/26, before rising to R1.7bn in 2026/27 and R2bn in 2027/28.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Treasury had planned big boost to basic education
Consolidated spending was set to increase an average 5.9% over the medium-term expenditure framework
Treasury had proposed giving the basic education sector some much-needed relief in the draft budget, providing an inflation-beating increase for the first time in more than five years.
Cabinet failed to sign off on Treasury’s proposed budget on Wednesday due to disagreements over its plans to raise VAT from 15% to 17%. It was an unprecedented turn of events in postapartheid SA, in which the tabling of the budget in parliament was postponed to March 12.
Consolidated spending on basic education was set to increase by an average of 5.9% over the medium-term expenditure framework. Treasury anticipated inflation would average 4.5% over the period.
Treasury was concerned about the impact of prior budget cuts on front-line services, particularly in education, said finance minister Enoch Godongwana.
“There is a threat of losing 19,000 teachers in KwaZulu-Natal,” he told reporters shortly before cabinet met to discuss the budget.
An extra R19.1bn was allocated to the basic education budget in Treasury’s proposed budget to secure teacher posts and expand early childhood development (ECD) services.
This is in line with the education department’s focus on ECD, which basic education minister Siviwe Gwarube has positioned as a crucial investment for SA’s future prosperity.
In the draft budget, consolidated spending on basic education was set to rise from a revised estimate of R325bn in 2024/25 to R350bn in 2025/26. It then increased to R369bn in 2026/27 and R386bn in 2027/28.
The draft budget included extra funding for the infrastructure education grant, including R2.3bn for the Western Cape’s rapid schools build programme.
However the proposed budget for postschool education and training was once again cut in real terms, as it was set to grow by just 4% over the medium-term expenditure framework. Expenditure was set to rise from a revised estimate of R145bn in 2024/25 to R147nb in 2025/26, before increasing to R154bn in 2026/27 and R163bn in 2027/28.
The draft budget for university infrastructure was slashed by an average of 12.5% over the medium term, falling from a revised estimate of R2.98bn in 2024/25 to R1.4bn in 2025/26, before rising to R1.7bn in 2026/27 and R2bn in 2027/28.
kahnt@businesslive.co.za
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