Parliament – The embattled higher education sector was on Wednesday allocated an overall expenditure budget of R68.7 billion for the 2016/17 period, an increase of seven percent on last year's R64.2 billion.
The National Student Financial Aid Scheme (Nsfas) allocation would this year increase to R14.2 billion from last year's R9.2 billion.
On Wednesday in Parliament, Finance Minister Pravin Gordhan said an additional R16.3 billion had been allocated for higher education over the next three years.
He said: “R5.7 billion of this addresses the shortfall caused by keeping fees for the 2016 academic year at 2015 levels, and the carry-through costs over the MTEF [medium-term expenditure framework] period. R2.5 billion goes to the National Student Financial Aid Scheme (Nsfas) to clear outstanding student debt, along with a further R8 billion over the medium term to enable current students to complete their studies.”
According to the Budget Review, this additional funding would enable about 71,753 students to clear outstanding debt accumulated between the 2013 and 2015 academic years.
The Department of Higher Education and Training faces a tough period with a number of sporadic campaigns at universities led by the call for fees to be scrapped entirely and education to be free.
Last year, a task team established by President Jacob Zuma to investigate funding challenges at universities recommended additional funding. Last month, a presidential commission of inquiry was set up to investigate the feasibility of free higher education. It is due to report back in November.
According to the Budget Review, medium-term expenditure on higher education would rise to a total of R80,5 billion in 2018/19 in order to increase access to quality education and training, broaden economic opportunities and build skills.
Meanwhile, the Budget Review said government would propose to increase incentives for employers bursaries, with the income eligibility threshold for employees to access the relief and the value of qualifying bursaries both increased.
African News Agency (ANA)