Nkabane’s R137.5bn Higher Education Plan Rejected

The Department of Higher Education and Training’s proposed R137.5 billion budget for the 2024/25 financial year has been dealt a major blow after it was voted down by opposition parties in the National Council of Provinces this week. The Economic Freedom Fighters (EFF), Democratic Alliance (DA), and MKP joined forces to reject Minister Nobuhle Nkabane’s first budget since assuming office in May.

The rejection has triggered political tension and public concern, particularly as the academic year nears its second semester. In a scathing response, Minister Nkabane denounced the rejection as “misogyny” and resistance to transformation, accusing detractors of undermining progress in the post-school education sector.

Budget Breakdown

The proposed R137.5 billion budget represented a 4.8% increase from the previous year, allocating:

• R91.7 billion to university education
• R13.2 billion to TVET colleges
• R4.2 billion for policy and planning
• R2.9 billion to community education and training
• R24.5 billion in skills levy transfers
• R55.4 billion for the National Student Financial Aid Scheme (NSFAS), bolstered by an R1.8 billion top-up

Over 91% of the department’s budget was earmarked for transfers and subsidies to institutions and student funding bodies, underscoring the sector’s reliance on state support.

The DA raised red flags over persistent inefficiencies and alleged corruption in the department, citing delays in student allowance payments and the ongoing crisis at NSFAS. “We cannot support a budget that perpetuates financial chaos and fails to deliver results to students and institutions,” a DA spokesperson said during debate.

EFF representatives argued that Nkabane had failed to account for key appointments and accused her of ignoring the plight of underfunded institutions and poor students. ActionSA echoed concerns, calling for stronger oversight of NSFAS and a renewed commitment to expanding student housing and infrastructure.

Funding Cuts Ahead

Despite the current increase, long-term fiscal projections indicate leaner times. Treasury has signaled that annual NSFAS allocations will be cut by R5 billion, and university funding by up to R2 billion per year over the next three years. Higher education’s share of GDP is expected to decline from 2.0% to 1.78% by 2026/27.

With over 800,000 students relying on NSFAS, the rejection of the budget has created uncertainty over allowances, accommodation payments, and university operations. Nkabane had emphasized that the additional R1.8 billion in NSFAS funding was meant to cushion immediate student needs.

However, institutions reportedly owe NSFAS over R11.9 billion in unaccounted disbursements, adding to the crisis.

Minister Nkabane insists the budget was designed to stabilize and transform higher education through tighter cost controls, expanded infrastructure, and improved gender equity. “Rejecting this budget is rejecting the transformation of our sector and the futures of thousands of black and working-class students,” she said.

The Department of Higher Education will now have to return to Parliament to revise or renegotiate the budget. Failure to reach consensus could jeopardize ongoing projects and delay critical student support systems.