OPINION - National Treasury has allocated R332.3 billion to basic education in the 2025 Budget, but with a growing student population and rising unemployment, more effective spending is crucial.
The real challenge lies not in how much is spent, but in how every Rand is allocated.
This is according to education analyst and IDEA CEO, Dr Corrin Varady, who notes that Finance Minister Enoch Godongwana's decision to reduce the VAT increase from 2% to 0.5% in 2025/26, and by another 0.5% the following year, has led to less funding for education. “In addition, cuts to U.S. funding in other sectors have further strained the education budget.”
Accountability and Outcome-Driven Budgeting
While South Africa boasts one of the world’s largest education budgets, Dr Varady argues that the issue lies in its execution. “Without strong checks and balances, spending inefficiencies persist in undermining progress.”
“Investment in education must go beyond building classrooms to focus on delivering meaningful learning outcomes,” he highlights.
“Budget allocations should put students at the centre, ensuring that every expenditure translates into improved education quality. Unfortunately, the current system often overlooks this, treating students as an afterthought. We must build a system that holds spending accountable to student-focused priorities.”
Dr Varady also insists that provinces are held accountable for measurable results. “Progress in student services, teacher development, and literacy and numeracy programmes should be scrutinised against expenditure. Without tangible improvements, discussions about budget expansions are irrelevant.”
Smarter Spending is Essential
Instead of seeking additional funding for new projects, he advocates for maximising the potential of existing resources. “We must rethink budget allocations to deliver cost-efficient programmes, especially in teacher training and student content.”
Dr Varady adds that, regardless of the latest budget announcement, resources should still be directed toward key priorities like digital learning.
“South Africa aims to equip students with Fourth Industrial Revolution skills and integrate them into the global digital economy. However, without innovative and resource-efficient implementation, these goals risk remaining aspirational rather than actionable.”
Rethinking Public-Private Partnerships
He believes South Africa could maximise the impact of available resources through stronger collaboration between public and private sectors which could unlock efficiencies and scale.
“However, fragmented provincial spending and opaque procurement processes have created mistrust, which discourages private sector involvement. If government can ensure financial stability and sustainable programme implementation, private sector innovation can complement public education with high-impact, cost-effective solutions.”
“We can no longer afford to continue as we have,” concludes Dr Varady. “Instead of fixating on funding limitations and stagnant educational outcomes, we must reassess how we allocate resources. The time for excuses is over - accountable, efficient spending is the only way forward.”
Read more opinion pieces here.
Disclaimer: The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of Group Editors and its publications.
‘We bring you the latest Garden Route, Hessequa, Karoo news’
