Pre-statement on MTBPS: Minister Mboweni, reverse cuts to education spending!
23 October 2018
Equal Education (EE) calls on newly appointed Minister of Finance, Tito Mboweni, to reverse major cuts to basic education funding in his maiden Medium Term Budget Policy Statement (MTBPS) tomorrow. The 2018/19 budget announced decreases to school infrastructure grants by approximately R7 billion over the medium term, and reduced the Department of Basic Education’s budget by 8%[1] - a first since its establishment in 2009.
Last year’s R48.2 billion revenue shortfall along with former President Jacob Zuma’s fee-free announcement, which resulted in a need for increased allocations towards higher education, put tremendous pressure on the fiscus. This prompted former Minister of Finance, Malusi Gigaba, to announce increases in taxes, including Value Added Tax (VAT) and the fuel levy, in his 2018 budget speech. Allocations towards social spending, particularly much needed infrastructure grants for schools, government-subsidised housing, and municipal services such bulk water services were cut.
These budget decreases and tax increases form part of broader austerity measures that will, without a doubt, continue to hamper South Africa’s ability to provide basic socio-economic services to those who need them most.
With regard to basic education spending, there has been a decade-long trend of regressive budgeting. Education economist Nic Spaull, shows that South Africa’s spending per learner has gradually decreased since 2010. In 2010 the state spent R17 822 on average, per learner. This decreased to R16 435 in 2017, and is projected to drop further to R15 963 by 2019 (all in 2017 rand).[2] These cuts will have the most severe impact on poor, mainly rural, black learners, further reducing their already slim chances of receiving quality education.