Minister Siviwe Gwarube: Media briefing on budget cuts
25 September 2024
Speech by the Minister of Basic Education, Ms Siviwe Gwarube, MP, at the media briefing on budget cuts held in Pretoria
Ladies and gentlemen,
Colleagues,
Members of the media
and all those invested in the future of our education system,
Good morning.
I called this press briefing today to confront a harsh reality—our education system is under immense pressure.
It is no secret that in recent weeks, several provincial departments of education have been vocal regarding budget pressures they face.
These pressures have been years in the making because of aggressive budget cuts, economic stagnation and fiscal mismanagement across government which is now set to impact schools.
These budget pressures are not just numbers on a spreadsheet—they translate into fewer teachers, reduced textbooks, and fewer admin support staff, which means teachers spend more time on admin work, thereby reducing learning and teaching time.
In essence, the very fabric of our children’s future is under threat.
The Impact of Budget Cuts: A National Crisis
In provinces like the Western Cape, we've already seen the painful decision to reduce the basket of teaching posts for 2025, a move that may result in fewer educators in classrooms. This may mean larger class sizes, reduced individual attention for learners, and, ultimately, a risk to the achievement of quality education outcomes.
Unfortunately, other provinces throughout the country are in a similar position with many desperately working to find ways of avoiding having to top slice budgets for key services like textbooks, admin support and scholar transport programmes.
The Deputy Minister and I have been in constant engagement with provinces to support them during this challenging fiscal environment. We have committed ourselves to doing everything we can to stabilize system and have appealed to provinces to retain the basket of posts, in order to not compromise education outcomes.
We must also appreciate the work that the provinces have been doing around the clock to help the sector get to grips with these challenges. I have witnessed MECs work tirelessly with their provincial departments to protect teaching and learning in our schools.
We are faced with a pending national crisis, one that affects not just our learners but our teachers, principals, and broader communities. It is crucial to understand that this crisis is not confined to one province or one aspect of the education sector. Every province is grappling with these painful choices. Provincial education departments will in the next 2-3 years find it increasingly difficult to fund their existing basket of posts and existing programmes within the available budget, unless measures are taken proactively to mitigate this risk.
For instance:
2025/26 Financial Year, 4 provincial departments will battle to cover their budgets
2026/27 Financial Year, 5 provinces will battle to cover their budgets.
2027/28 Financial Year, 7 provinces will not be able to afford their budgets.
Several provinces have preserved the same post basket for the past three academic years, despite learner numbers increasing, while other provinces have decreased their posts in the past 3 years. It is important to note that these have been cuts in posts but not warm bodies.
Meaning that no person gets retrenched but rather vacancies are not filled.
Nationally, the number of learners within the education system have increased by approximately 292,820 over the last five years. Learner/Educator Ratios have also steadily increased across most provinces.
An increase in learners' number without increasing the post basket, may affect the quality of teaching which may soon be reflected in the performance of the system.
Largely, the financial constraints have had the largest impact on educator provisioning, leading to a steady increase in Learner/Educator Ratios in most Provincial Education Departments.
Most Provincial Education Departments require between R350 million and R3.8 billion [over the Medium-Term Expenditure Framework to fully fund their respective basket of posts].
The numbers are staggering. If we continue down this path, projections indicate that most provincial education departments will not be able to maintain their respective basket of posts.
A Legacy of misaligned priorities
To fully grasp why we are here and more importantly how we got here, we must look back and acknowledge that as government, we have not made the right choices at the right time – which has brought us to this point.
First and foremost, our economy has been stagnant for nearly a decade. Growth rates have remained below 1% in real terms, which is far below what is needed to generate sufficient tax revenue to fund our public services, including education. Without a growing economy, government revenues shrink, and when revenues shrink, so do our budgets.
South Africa needs a robust, dynamic, and growing economy to generate the revenue required to fund public services adequately.
We must adopt and implement economic policies that prioritize growth. We must wholeheartedly support Operation Vulindlela, which aims to unblock key constraints to growth, as a step in the right direction.
Regulatory bottlenecks that stifle business growth must be removed, and we must encourage private sector investment in key industries, such as manufacturing and technology.
Moreover, our spending priorities need re - alignment. Between 2013 and 2023, the government spent R331 billion bailing out state-owned enterprises (SOEs). This figure is staggering, especially when you consider the opportunity cost. R331 billion could have been directed to critical sectors such as education, healthcare, and economic infrastructure development. Instead, it has been funnelled into SOEs that continue to underperform, dragging down our economy and draining public resources.
Wasteful expenditure and corruption have further hollowed out state coffers. Between 2014 and 2023, South Africa lost an estimated R1.5 trillion in economic value to corruption—money that should have been used to build schools, pay teachers, and improve learning conditions. Instead, it has lined the pockets of a few at the expense of many.
In addition to these bailouts, we’ve seen unsustainable increases in the public wage bill. Over the past 15 years, public sector salary increases have consistently outpaced inflation, with some years seeing increases as high as 8-10%.
While we must fairly compensate public servants, these above-inflation increases have rendered the public wage bill unaffordable, accounting for nearly 35% of government spending. This leaves little room for investment in key sectors like education.
Proactive Leadership and Immediate Interventions
In response to this potential crisis, I convened two special meetings of the Council of Education Ministers (CEM). These meetings brought together education MECs from across the country, and we conducted a thorough analysis of the budget challenges in each province. MECs from every province have compiled provisional provincial reports with sobering results —
For the first time in a decade, we now have a clearer picture of where the most significant budget pressures lie and how we need to engage treasury in a bid to address the challenges we see.
As a result, I have requested an urgent meeting with the Minister of Finance to discuss the matter further. I am grateful to Minister Godongwana for his cooperation and support on this important matter.
We are also appreciative of Treasury’s willingness to engage with the Education sector. Ultimately a solution must be found in order for us to protect front line services.
In addition, I have also requested a convening of a political 10X10 meeting between the Minister of Finance and the provincial MECs for Finance, as well as myself, as the Minister of Education, and the nine MECs of Education. We must work together with all 10 treasuries to unlock additional funds to alleviate the pressures facing the education sector, even if it is for the short term, and to prevent further cuts to teaching posts and critical support services like school nutrition and transport.
We also need to look at cross-departmental reprioritization of budgets from departments that have under-performing programmes – ensuring that funding across government is directed to appropriate national priorities.
The Long-Term Vision: Investing in Our Future
While fixing the economy is critical, we also need to rethink how we invest in education. Education is not just another expenditure—it is an investment in our country’s future. A well-educated population is the foundation of a prosperous, competitive, and innovative economy. Without it, we cannot hope to address our unemployment crisis or compete in the global economy.
In the long term, we need to adopt policies that prioritize education as a national imperative. This means:
Increased Investment: Education should receive a larger share of the national budget, ensuring that we have enough teachers, quality infrastructure, and adequate resources for every learner.
Teacher Development: We must invest in upskilling our teachers to equip them with the tools and knowledge they need to educate in a rapidly changing world.
Technology in Education: As we enter the digital age, we must embrace technology in our classrooms. This includes providing digital tools, access to the internet, and training for both teachers and learners to ensure that no child is left behind in the 21st century.
Invest in Appropriate Infrastructure and eradicate unsafe infrastructure such as pit latrines.
Conclusion
Ladies and gentlemen, our education system is the bedrock of our nation’s future. While we face significant challenges, these are not insurmountable. But they require decisive action and an unwavering commitment to putting education first.
Finally, I would like to thank my MECs for Education, their provincial Departments, and the Minister of Finance and my Department, Teacher Unions and the ELRC for their cooperation and support on this matter to date.
Thank you.
Issued by Department of Basic Education, 25 September 2024
