The South African government has set aside R16.3-billion to bridge the 2016 university fee increase freeze gap and clear students’ National Student Financial Aid Scheme (NSFAS) debt accrued from 2013 to 2015.
Tabling the 2016 Budget in Parliament on Wednesday, Finance Minister Pravin Gordhan said R5.7-billion of the higher education three-year allocation that was funded through the reprioritisation of R31.8-billion in expenditure plans, would address the shortfall caused by keeping fees for the 2016 academic year at 2015 levels.
Another R2.5-billion was allocated to NSFAS to clear the outstanding debt of 71 753 underfunded or unfunded students for the 2013 to 2015 academic years, with a further R8-billion set aside over the medium term to enable current students to complete their studies.
A presidential commission had been appointed to consider options for funding higher education, as well as the feasibility of making higher education and training fee free in South Africa. The commission would deliver a report with its findings within ten months.
The National Treasury pointed out that the number of students enrolled in higher education institutions was projected to increase from one-million in 2015/16 to 1.1-million in 2018/19, with the number of postgraduates and doctoral graduates rising from a respective 48 300 and 2 060 currently to 56 600 and 2 500 respectively over the same period.
Options considered included the reprioritising of funds from existing government programmes, instituting efficiency measures in post-school education and training institutions, reforming NSFAS and mobilising new sources of funding through the tax system.
Overall, higher education allocations within the medium-term expenditure framework would increase from R64.2-billion in 2015/16 to R80.5-billion in 2018/19, with 41.6% set aside for university subsidies and infrastructure.
Funding for NSFAS increased from R9.2-billion in 2015/16 to R14.2-billion in 2016/17.
The newly established University of Mpumalanga and the Sol Plaatje University in the Northern Cape were allocated R3.9-billion for operational costs and capital expenditure over the medium term, allowing the universities to expand enrolments from the 1 234 admitted in 2015 to 2 010 students this year.