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Wednesday, March 4, 2026

ANALYSIS| Education takes 23.7% of non-interest spending in 2026/27 budget

By Thebe Mabanga

South Africa’s spending on education reflects its status as a core development indicator. Allocations to programmes such as school nutrition and Early Childhood Development (ECD), which formally enrols children into education as early as four years old, exceed global benchmarks on education spending.

A detailed review of the Budget Review and Estimates of National Expenditure (ENE) bears out the reality behind these numbers.

The overall allocation for learning and culture for the 2026/2027 financial year stands at R527,2 billion.

Basic education receives R358,5 billion, post-school education R155,8 billion, and Arts and Culture R12,8 billion.

A continued reflection of education as a strong development priority is evident over the Medium-Term Expenditure Framework (MTEF), where learning and culture grows at 3,4%, in line with the new inflation outlook, and accounts for 23,7% of total non-interest spending, the largest such allocation in the budget.

The National Student Financial Aid Scheme (NSFAS) receives R54,3 billion as it grapples with challenges that include improving access for poor students while sourcing and paying for adequate accommodation in major urban centres and outlying areas.

The Budget Review notes that the National School Nutrition Programme provides meals to more than 9,9 million learners across 19 800 schools.

“Allocations to the programme grow by 4,5 per cent to R33,9 billion over the medium term and have not been adjusted for the lower inflation outlook, given that food price inflation is higher than the overall inflation rate,” it stated.

Spending on Learner Teacher Support Material currently stands at R6,7 billion, while school infrastructure allocations amount to R1,7 billion.

These are levels of spending comparable to developed countries in prioritising foundational learning inputs.

Expenditure on Early Childhood Development increases from R12,2 billion in 2025/26 to R18 billion over the medium term.

This will enable ECD services to be expanded to an additional 300 000 children. In her recent contribution to the State of the Nation Address (SONA) debate, Basic Education Minister Siviwe Gwarube noted that the aim of ECD investment is to “ensure that a child from Giyani and Lusikisiki has the same head start as a child in Sandton.”

University transfers amount to R50,5 billion, while Technical and Vocational Education and Training (TVET) colleges receive R15 billion.

Given the renewed emphasis on TVET colleges as a pathway to employment, and the student numbers required to meet National Development Plan (NDP) targets, these allocations may require further review.

Skills development bodies, such as the Sector Education and Training Authorities (SETAs) and the National Skills Fund, are projected to receive R88 billion over the three years from 2026.

This is the funding envelope critics argue should not simply be redirected to skills development while scrapping SETAs altogether, as concerns persist that “these institutions are struggling to deliver the skills required to drive economic growth.”

The Budget Review notes that “the National Treasury has commissioned the Government Technical Advisory Centre to conduct a comprehensive review of the national skills ecosystem in the year ahead.”

In terms of public infrastructure spending, education receives R19,1 billion in the current financial year, while health receives R15,8 billion. Over the next three years, education is allocated a combined R58,5 billion, compared with health’s R43,5 billion.

Both figures pale in comparison to transport and logistics infrastructure spending, which receives R130,7 billion in the current financial year and a combined R417,6 billion over the medium term.

The purpose is to improve the efficiency of the country’s rail and port network to drive export performance and economic growth.

INSIDE EDUCATION

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