School, varsity projects delay forecast

Treasury wary of infrastructure plans grinding to a halt at tertiary institutions and other places of learning

NATIONAL Treasury is projecting delays in infrastructure plans and completion of projects at tertiary institutions and schools.

This after the Budget unveiled by Finance Minister Tito Mboweni revealed cuts to infrastructure funding.

“Reduction in basic and higher education infrastructure grants amount to R5.2 billion over the medium-term.

“These reductions are expected to cause revisions to infrastructure plans and delays in project completion,” reads the National Treasury’s Budget review document.

Another National Treasury document said a R35bn education infrastructure grant was allocated to the basic education department over the medium-term to provinces as a supplementary conditional grant for the provision of school infrastructure.

“Cabinet has approved reductions on the grant amounting to R1.9bn over the medium-term. Although the reductions are not expected to affect existing projects, provinces will be required to revise their infrastructure plans going forward,” says the Estimates of National Expenditure document.

The document also said Cabinet approved reductions amounting to R122.8m on the infrastructure backlog grant intended to provide water, sanitation and electricity to schools that do not have basic services and replace schools that are constructed with inappropriate materials.

“Of the grants, R6.5bn allocated over the MTEF (medium-term expenditure framework) period, R2.8bn is allocated for the provision of appropriate sanitation facilities.

“In 2020-21, the department plans to spend R1.7bn of the grant’s allocation to build 31 new schools, provide sanitation to 691 schools and water to 125 schools thereby ensuring all schools have access to water by the end of 2020-21.”

National Treasury noted that spending on student accommodation had been slow due to delays in procurement and poor performance by contractors and implementing agents.

“Despite Cabinet approving reductions of an estimated R621.3m over the MTEF period on allocations to university infrastructure in the university education programme, R8.8bn is allocated on the university subsidies sub-programme for spending on university infrastructure.

“NSFAS allocation expected to be R109bn over the medium term Estimates of National Expenditure Treasury

“This allocation is expected to contribute to the department’s aim of developing 200000 new university beds by 2026,” says the document.

Mboweni steered clear of the Budget cuts when he delivered his Budget.

He, however, said in 2020-21 the maths, science and technology grant would introduce coding and robotics to pupils in Grades R to 3.

Mboweni also said work would start on the Pan African University Institute for Space Sciences at the Cape Peninsula University of Technology.

He also said the Department of Higher Education and Training would re-allocate funds to undertake a feasibility study for the establishment of a new university of science and technology in Ekurhuleni.

But, according to the National Treasury documents, the National Student Financial Aid Scheme allocation was expected to amount to R109bn over the medium term.

“These are set to increase at an average annual rate of 7.7% from R30.5bn in 2019-20 to R38.2bn in 2022-23 despite the R899.2m of cabinet’s approved reductions to the programme being on the scheme’s allocation for TVET colleges.”

The National Treasury said the basic education department was working with the department of social development and other partners to oversee the migration of the responsibility for early childhood development (ECD) sector to fall under its administration.

“In 2020-21, the department plans to conduct an ECD audit to determine the need across all affected age groups as well as the quality of provision of these services.”

It also said the number of bursary awards was intended to be maintained at 12 500 per year over the medium-term period.

“This is on the condition that general increases in university costs do not exceed average annual increases in allocations to the bursary scheme of 5% for the same period.”