VOTE 16: HIGHEREDUCATION AND TRAINING

Presentation on:Expenditure progress 2010/112010 MTEF: 2011/12 Allocations2011 MTEF

12 October 2010

Presentation Structure

1. Budget versus expenditure 1 April 2010 to 30 September 2010

2. 2010 MTEF Allocations: Projections up to 31 March 2012

3. 2011 MTEF Process

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• The Department’s total budget of R32.145 billion includes a large amount of direct charges and transfers. The budget versus expenditure to 30 September 2010 is as follows R’000 :

Budget Expenditure

Total voted funds 32 144 926 21 953 503

Less: Direct charges (SETA funding and NSF) 8 424 228 4 661 121

Balance of voted funds 23 720 698 17 292 382

Less Transfers: Universities 17 516 740 13 581 999

NSF (Contribution by Exchequer) 51 731 34 488

Public Entities 1 986 740 1 550 210

FET Conditional Grant 3 772 661 1 966 951

Other ( such as SETA) 569 392

Less Compensation of Employees 228 901 121 905

Balance available/spent on operational expenditure and

project costs 163 356 36 437

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PART 1BUDGET VERSUS EXPENDITURE 1 APRIL 2010 TO 30

SEPTEMBER 2010

EXPENDITURE PER PROGRAMME(EXCLUDING DIRECT CHARGES)

2010/11

Total per programme ENE

(R’000)EXP

(R’000) % SPENT(R’000) 

P1: Administration 100 545 35 745 35.6

P2: Human Resource Development, Planning and Monitoring Coordination 26 004 9 355 36.0

P3: University Education 19 493 353 15 147 507 77.7

P4: Vocational and Continuing Education and Training 3 932 518 2 029 113 51.6

P5: Skills Development 168 278 70 662 42.0

Total Allocation 23 720 698 17 292 382 72.9

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Economic Classification (R’000)

2010/11(R’000)

Expenditure(R’000)

% Spent(%)

Compensation of employees 228 901 121 905 53 .3

 

Goods and services 153 523 35 467 23.1

Transfers and subsidies 23 328 441 17 134 040 73.4

 

Machinery and equipment 9 833 970 9.9

Total 23 720 698 17 292 382 72.9

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Detail of earmarked allocations/transfers (R’000)

2010/11

ENE(R’000)

EXP(R’000) % SPENT

Transfers to Universities 17 516 740 13 581 999 77.5   

Transfers to Public Entities 1 986 740 1 550 210 78.0

NSFAS 1 909 359 1 511 519 79.2

CHE 36 046 18 023 50.0

SAQA 41 335 20 668 50.0   

Other Transfers 3 824 961 2 001 831 52.3

SETA 141 125 88.7

India-Brazil-South Africa Trilateral Commission 428 - 0.0

National Skills Fund 51 731 34 488 66.7

FET Conditional Grant 3 772 661 1 966 951 52.1

Households  - 267 -

Earmarked Funds 25 551 1 988 7.8

Office Accommodation 25 551 1 988 7.8

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Projections for Adjustments Estimate (Not yet finalised) (R’000)

2010/11(R’000)

Amount allocated in the ENE (Excluding Direct Charges) 23 720 698

 Plus:  

Amount requested to be rolled over 16 306

Inflation adjustment for salary increases 6 000

Amount to be suspended from Basic Education for Commonwealth of Learning 1 901

 TOTAL PROJECTED ADJUSTMENTS  24 207

TOTAL PROJECTED REVISED ALLOCATION 23 744 905

Expectations are that additional funds will not be received for the Examinations Function for this financial year

Virement will be applied to address projected over-expenditure on the examinations function and projects such as the FET intervention project.

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TREASURY ALLOCATIONS  2010/11 2011/12  R'000 R'000     Baseline allocation 19 758 642 21 615 071 Additions to baseline: 3 793 778 4 303 290 Higher Education Subsidies - 300 000 Student Loans: Inflation adjustment - - Funding for newly established department 20 000 30 000 Compensation of Employees adjustment 1 117 1 301

Further Education and Training (Shift from Provinces)* 3 372 661 3 541 989 Further Education and Training (College educators) 400 000 430 000      Adjustments to Baseline 8 592 506 9 336 195 Skills Function Shift from Department of Labour 166 077 184 915 Skills Function Shift: Compensation of Employees adjustment from Department of Labour 2 201 2 568 Function Shift: Direct Charges 8 424 228 9 148 712

Sector Education and Training Authorities 6 739 382 7 318 967 National Skills Fund 1 684 846 1 829 745

Less: - ( 1 246)Baseline Efficiency Savings - ( 1 246)2010 ENE ALLOCATIONS 32 144 926 35 253 310 Excluding Direct Charges 23 720 698  26 104 598 

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PART 22010 MTEF ALLOCATIONS:

PROJECTIONS UP TO 31 MARCH 2012

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Allocation per programme 2010/11(R’000)

2011/12(R’000) 

P1: Administration 100 545 106 086

P2: Human Resource Development, Planning and Monitoring Coordination 26 004 28 794

P3: University Education 19 493 353 21 681 852

P4: Vocational and Continuing Education and Training 3 932 518 4 100 383

P5: Skills Development 168 278 187 483

Total Allocation 23 720 698 26 104 598

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Allocation per Economic Classification 2010/11(R’000)

2011/12(R’000)

Compensation of employees 228 901 245 795

 

Goods and services 153 523 173 286

Transfers and subsidies 23 328 441 25 679 510

 

Machinery and equipment 9 833 6 007

Total 23 720 698 26 104 598

• The Department submitted bids for additional funding to improve access for post-school education and training through a Ministerial letter as part of the 2011 MTEF budgeting process

• Discussions took place with the Department in the Medium Term Expenditure Committee Workgroup for Education, responsible for the whole Education Sector, including Basic Education and provincial education

• From discussions in the workgroup, it is anticipated that some funding will be made available for the Higher Education and Training Sector, although very limited

• Any additional funding will be submitted as a proposal by National Treasury to the Medium Term Expenditure Committee (MTEC) for final recommendations to be presented to the Minister’s Committee on the Budget (MinComBud)

• MinComBud will after consideration of the proposals by the MTEC, submit recommendations to Cabinet

• A summary of the bids for additional funding submitted to National Treasury follows in the next slide 11

PART 32011 MTEF PROCESS

Total Funding Proposal over the2011 MTEF

PRIORITY AREA 2011/12 2012/13 2013/14 Total

  R'000 R'000 R'000 R'000

Cost of Establishing Full Functionality of DHET 107,949 102,310 107,884 318,143

Cost of Establishing DHET Regional offices 15,000 9,000 9,000 33,000

Expansion of Subsidies to Fully Fund NSFAS Grant Holders 1,738,000 2,069,000 2,476,000 6,283,000

University Block Grant 770,000 910,000 1,075,000 2,755,000

Establishment of Universities in Mpumalanga and Northern Cape 155,000 275,000 384,000 814,000

Infrastructure and Output Efficiency Grant 187,000 1,344,000 1,540,000 3,071,000

HEAIDS 49,000 53,000 58,000 160,000

Support for the Additional Enrolment Projections in the public FET Colleges 3,448,000 4,040,000 5,938,000 13,426,000

FET Colleges NSFAS 502,000 728,000 1,026,000 2,256,000

FET Colleges Examination 58,000 85,000 119,000 262,000

Implementation of the Newly Established Quality Council for Trade and Occupations 22,500 31,800 31,300 85,600

TOTAL MTEF FUNDING REQUIREMENT (3-years) 7,052,449 9,647,110 12,764,184 29,463,743

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• Other steps taken include a request to National Treasury for a review of the equitable share to address the enrolments at FET Colleges

• The Minister of Higher Education and Training will also be meeting the Minister of Finance to discuss key areas including:

- The need for additional resources in the current MTEF for existing programmes

- Steps that are considered to allocate resources from the NSF and skills levy funding to address the provision of critical and scarce skills

- The requirement to increase the investment in education and training over time

- THANK YOU -13