“You want us to give you a blank cheque”: National Treasury confirms it has no commitment to fund BELA

11 April 2024

National government has no plan to fund the implementation of the Basic Education Law Amendment (BELA) Bill. Should the bill pass into law, based on the Bill's current calculations, each of South Africa’s nine provinces will be required to find an additional and unplanned minimum amount of R2 billion per annum to fund its implementation.

These shocking revelations were made at this morning’s briefing by National Treasury to the Western Cape Standing Committee on Education. The briefing was also attended by representatives of the national Department of Basic Education (who have proposed the Bill), the Western Cape Education Department, and the Western Cape Provincial Treasury. While Minister Enoch Godongwana had been specifically invited to appear before the committee, he tendered an apology.

During their presentation, National Treasury’s representatives confirmed that no allocation to fund the implementation of BELA has been made within the next three financial years and that National Treasury has not committed to funding the Bill. This contradicts previous statements made by the Department of Basic Education to the committee, in which DBE stated that National Treasury had committed to funding the Bill.

When questioned on this, DBE representatives in the meeting admitted that the Bill was “not fully funded”, and that provinces would be left to find the estimated additional R2 billion per annum for costs related to BELA implementation – including the multi-billion Rand expense associated with mandatory Grade R implementation. While DBE claimed that Grade R is funded to 70% across South Africa, neither the DBE nor National Treasury were able to provide an answer as to where the additional 30% of funding might come from. Instead, DBE suggested that provinces would have to look towards their current provincial equitable share funding to fund this - meaning DBE wants provinces to figure it out themselves.

During previous committee briefings, the Financial and Fiscal Commission (FFC) stated that BELA’s cost was likely to be much higher than the DBE’s claimed figure, with the Bill predicted to cost at least R17.7 billion when estimated conservatively. This does not include uncosted matters such as increases in nutrition and transport programmes.

When given an opportunity to comment, representatives of the Western Cape’s Provincial Treasury confirmed that the Western Cape will not be able to carry the additional financial burden. Representatives of the Western Cape Education Department also confirmed that their Department sees no way of implementing BELA without sacrificing other initiatives. The Western Cape is already in the process of an intergovernmental dispute with national government over a R1.7 billion funding shortfall related to the ANC government’s unilateral decision to unsustainably hike public wages.

Nevertheless, the DBE and National Treasury downplayed concerns from committee members regarding the financial implications of the Bill, and stated that “no bill is ever fully funded”. Agreeing to a Bill knowing full well it will not be fully funded amounts to bad law-making. Committee members will meet tomorrow to finalise their decision on the Bill.

DA Western Cape Spokesperson on Education Deidré Baartman says: “Today’s shocking revelations confirm what we have long suspected: national government has no plan or intention to pay for BELA. They have washed their hands of the problem, and will expect already cash-strapped provincial governments to implement the Bill.

If that happens, provinces will be forced by law to move funding away from other, worthwhile projects in order to fund this Bill. This is not about mandatory Grade R – something which the DA supports. This is about the fact that national government has not done its homework on the funding, costing and implementation of this Bill. Despite what DBE says, we cannot allow the issue of costing to slide when considering this Bill. We are not in the business of handing out blank cheques.”

Issued by Deidre Baartman, DA Western Cape Spokesperson on Education, 11 April 2024