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Postponed Budget could exacerbate woes for South African students and universities

Postponed Budget could exacerbate woes for South African students and universities
Takudzwa Pongweni
By Takudzwa Pongweni
26 Feb 2025
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The postponement of South Africa’s national Budget is set to intensify the financial challenges facing both students and universities. As institutions struggle to meet rising demand and tuition debts, the lack of clarity on funding could push already vulnerable students closer to the brink of exclusion.

Last week’s proposed Budget, which was postponed due to GNU partners’ disagreement with a 2 percentage point VAT  increase, would have provided some much-needed relief to the basic education sector, offering an inflation-busting increase for the first time in more than five years.

Consolidated spending on basic education was set to rise by an average of 5.9% over the medium-term expenditure framework, outpacing expected inflation, which was anticipated to average 4.5% during the same period.

An additional R19.1-billion was earmarked for the basic education budget to secure teacher positions and expand early childhood development (ECD) services. This aligns with the education department’s prioritisation of ECD, which Minister Siviwe Gwarube has emphasised as a critical investment for South Africa’s future prosperity.

The proposed Budget projected consolidated spending on basic education would rise from a revised estimate of R325-billion in 2024/25 to R350-billion in 2025/26, continuing to increase to R369-billion in 2026/27 and R386-billion in 2027/28. The proposal also included additional funding for the infrastructure education grant, such as R2.3-billion for the Western Cape’s rapid school building programme.

Education budget cuts threaten access and quality


However, the proposed budget for post-school education and training faced a real-term reduction, with expenditure expected to grow by just 4% over the medium term. The budget was set to increase from a revised estimate of R145-billion in 2024/25 to R147-billion in 2025/26, before rising to R154-billion in 2026/27 and R163-billion in 2027/28.

Meanwhile, the draft budget for university infrastructure has been dramatically cut over the medium term. It is expected to drop from a revised estimate of R2.98-billion in 2024/25 to R1.4-billion in 2025/26, before rising to R1.7-billion in 2026/27 and R2-billion in 2027/28.

Read more: Vice-chancellors: ‘Funding of public higher education institutions is in crisis mode’

Aliya Chikte, Project Officer at the Alternative Information & Development Centre, highlighted the mounting challenges for Historically Black Institutions (HBIs) in the face of reduced budgets.

“Aligning enrolments with a reduced budget will become increasingly challenging,” Chikte said, warning that HBIs, which are less reliant on third-stream funding, will bear the heaviest financial strain if further cuts to higher education are implemented in the finance minister’s March speech.

Chikte further explained that students dependent on the National Student Financial Aid Scheme (NSFAS) risk facing additional delays in payments and approval, exacerbating the hunger and housing crises at universities.

“Many may struggle to learn in conducive environments due to a lack of nearby accommodation and insufficient subsistence allowances,” she said.

This precarious situation places students at a higher risk of exclusion from higher education, which has long-term economic implications.

Chikte also pointed out that those priced out of higher education faced a 26-percentage-point higher risk of unemployment compared with graduates, emphasising the urgent need for investment in education as a means of promoting national economic growth.

“As the new budget is tabled, we urge for progressive funding that prioritises education as an investment in the nation’s economic future,” she said. 

Student union slams budget delay


The South African Union of Students voiced its “profound consternation” over the postponement, calling it an embarrassing parliamentary debacle and emphasised that it was not merely a bureaucratic hurdle but a significant disruption with far-reaching implications for students’ lives and conditions across the nation.

“The budget is the lifeblood of state-funded higher education, and its instability threatens to relegate thousands of students into the abyss of exclusion and destitution,” read the student union statement.

It said NSFAS funding was directly tied to national Budget allocations. Any disruption, especially the breakdown of the budgeting process, threatened NSFAS’s ability to fulfil its core mission: providing access to higher education for financially vulnerable yet academically deserving students.

This crisis had cast uncertainty over the future of NSFAS applicants, particularly those waiting for funding appeal results. The number of students receiving financial support now hinged entirely on Parliament’s budgetary decisions.

“The spectre of financial uncertainty looms ominously over the disbursement of allowances, which serve as the primary means of sustenance for indigent students. The book allowances, accommodation stipends and meal subsidies that students rely on are directly predicated upon the fiscal allocations to NSFAS. The failure to cement a budget framework may translate to delayed payments, institutional instability and a heightened probability of mass exclusions,” said the student union. 

It emphasised that the funding crisis was not merely an administrative failure, but a reflection of the systemic issues caused by underfunding in higher education. NSFAS was currently expected to support nearly a million students, with numbers set to rise as living costs increased and more students fell into financial hardship.

“In conclusion, the collapse of the budget speech is an egregious failure of governance with tangible ramifications for the student populace. The working-class student, who already endures the pangs of economic hardship, must not be sacrificed at the altar of political theatrics,” said the union.

Read more: Shrinking budget leaves thousands of students with no pathway to higher education

USAf calls for constructive dialogue


Universities South Africa (USAf), which represents South Africa’s 26 public universities, has acknowledged the serious challenges students face, particularly around the issue of outstanding tuition fees. In a recent statement, the USAf board expressed empathy for students, especially first-time entrants awaiting confirmation of funding from NSFAS.

USAf emphasised that universities were doing their best to support students under challenging financial constraints, often making special concessions on outstanding debts or mobilising funds from various sources to assist those affected.

However, the board clarified that universities were not the primary source of funding and could not resolve NSFAS funding delays or settle the outstanding amounts owed by students.

 “The protests are being misdirected,” said the board, urging students to direct their grievances through the appropriate channels – namely, approaching NSFAS and government representatives to advocate for systemic changes to the funding mechanisms.

USAf further stressed that disruptions on campuses due to protests were counterproductive, as they ultimately disrupted the academic activities students were striving to access. The board called for constructive dialogue over protest, encouraging students to work collaboratively with all stakeholders to find sustainable solutions to the funding crisis. DM

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