Minister Gwarube urges government to prioritise education funding over SOE bailouts amidst crisis

Minister Gwarube has outlined the challenges provincial departments face due to financial constraints, emphasising the need for the government to reallocate funds and prioritise education over state-owned enterprise bailouts to secure a brighter future for South Africa’s children. Picture: Ayanda Ndamane / Independent Newspapers

Minister Gwarube has outlined the challenges provincial departments face due to financial constraints, emphasising the need for the government to reallocate funds and prioritise education over state-owned enterprise bailouts to secure a brighter future for South Africa’s children. Picture: Ayanda Ndamane / Independent Newspapers

Published Sep 25, 2024

Share

Minister of Basic Education Siviwe Gwarube held a media briefing today, September 25 in Pretoria to address the urgent financial challenges plaguing South Africa’s education system.

The briefing aimed to raise public awareness faced by various provinces in terms of finances in the education sector and outline the government's commitment to finding solutions while seeking support from stakeholders.

Gwarube acknowledged that provincial departments have been vocal about the financial strains they have been experiencing in recent weeks.

“It is no secret that several provincial departments of education have raised concerns regarding budget pressures,” she said.

She elaborated on how years of budget cuts, a stagnant economy, and poor management have resulted in fewer teachers and resources in schools.

This situation has forced educators to focus more on administrative tasks rather than teaching, thereby threatening the quality of education and the future of children.

One notable example she made is the Western Cape, where a painful decision has been made to reduce the basket of teaching posts for 2025, potentially resulting in fewer educators in classrooms.

Gwarube emphasised that other provinces are facing similar problems, saying, “Unfortunately, other provinces throughout the country are in a similar position, with many desperately seeking ways to avoid budget cuts for key services like textbooks, administrative support, and scholar transport programs.”

The Minister underscored her team’s commitment to supporting the provinces during this challenging time, stating, “We have committed ourselves to doing everything we can to stabilise the system and have appealed to provinces to retain the basket of posts to avoid compromising education outcomes.”

Gwarube forecast that the financial difficulties in the education sector will worsen in the coming years. She provided a timeline of expected budget challenges:

In the 2025/26 financial year, four provinces will face difficulties.

In the 2026/27 financial year, five provinces will encounter budget challenges.

By the 2027/28 financial year, seven provinces will struggle to cover their budgets.

During her briefing, Gwarube discussed the root causes of the current financial problems, noting, “The government has not made the right choices at the right time.”

This admission highlights the decisions made over the years that have contributed to the financial crisis in education.

She emphasised the critical need for economic growth, stating, “South Africa needs a robust, dynamic, and growing economy to generate the revenue required to adequately fund public services.” Without a thriving economy, the tax revenue necessary to support essential services, including education, will be insufficient.

Gwarube further addressed the misallocation of funds, explaining that “the government spent R331 billion bailing out state owned enterprises instead of investing in critical sectors such as education, healthcare, and economic infrastructure development”. This diversion of financial resources has exacerbated the challenges faced by the education system.

To tackle this crisis, Gwarube has organised two meetings with education leaders across the country to analyse budget challenges in each province.

“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.”

Additionally, she has requested a meeting with the Minister of Finance to discuss these issues further.

She also called for a "10X10 meeting" with the Minister of Finance and provincial finance MECs to collaborate on unlocking additional funds for education and exploring budget reprioritisation from underperforming departments to ensure essential services are maintained.

In her closing remarks, Gwarube stressed the importance of rethinking investment in education, saying, “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.”

IOL