VOTE 16: HIGHER EDUCATION AND TRAINING  Presentation on: Expenditure progress 2010/ MTEF: 2011/12 Allocations 2011 MTEF  12 October 2010

Presentation Structure 1.Budget versus expenditure 1 April 2010 to 30 September MTEF Allocations: Projections up to 31 March MTEF Process 2

The Department’s total budget of R 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 Less: Direct charges (SETA funding and NSF) Balance of voted funds Less Transfers:Universities NSF (Contribution by Exchequer) Public Entities FET Conditional Grant Other ( such as SETA) Less Compensation of Employees Balance available/spent on operational expenditure and project costs PART 1 BUDGET 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 P2: Human Resource Development, Planning and Monitoring Coordination P3: University Education P4: Vocational and Continuing Education and Training P5: Skills Development Total Allocation

Economic Classification (R’000) 2010/11 (R’000) Expenditure (R’000) % Spent (%) Compensation of employees Goods and services Transfers and subsidies Machinery and equipment Total

Detail of earmarked allocations/transfers (R’000) 2010/11 ENE (R’000) EXP (R’000)% SPENT Transfers to Universities Transfers to Public Entities NSFAS CHE SAQA Other Transfers SETA India-Brazil-South Africa Trilateral Commission National Skills Fund FET Conditional Grant Households Earmarked Funds Office Accommodation

Projections for Adjustments Estimate (Not yet finalised) (R’000) 2010/11 (R’000) Amount allocated in the ENE (Excluding Direct Charges) Plus: Amount requested to be rolled over Inflation adjustment for salary increases6 000 Amount to be suspended from Basic Education for Commonwealth of Learning1 901 TOTAL PROJECTED ADJUSTMENTS TOTAL PROJECTED REVISED ALLOCATION 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. 7

TREASURY ALLOCATIONS 2010/112011/12 R'000 Baseline allocation Additions to baseline: Higher Education Subsidies Student Loans: Inflation adjustment - - Funding for newly established department Compensation of Employees adjustment Further Education and Training (Shift from Provinces)* Further Education and Training (College educators) Adjustments to Baseline Skills Function Shift from Department of Labour Skills Function Shift: Compensation of Employees adjustment from Department of Labour Function Shift: Direct Charges Sector Education and Training Authorities National Skills Fund Less: - ( 1 246) Baseline Efficiency Savings - ( 1 246) 2010 ENE ALLOCATIONS Excluding Direct Charges PART MTEF ALLOCATIONS: PROJECTIONS UP TO 31 MARCH 2012

9 Allocation per programme 2010/11 (R’000) 2011/12 (R’000) P1: Administration P2: Human Resource Development, Planning and Monitoring Coordination P3: University Education P4: Vocational and Continuing Education and Training P5: Skills Development Total Allocation

10 Allocation per Economic Classification2010/11 (R’000) 2011/12 (R’000) Compensation of employees Goods and services Transfers and subsidies Machinery and equipment Total

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 MTEF PROCESS

Total Funding Proposal over the 2011 MTEF PRIORITY AREA2011/122012/132013/14Total R'000 Cost of Establishing Full Functionality of DHET107,949102,310107,884318,143 Cost of Establishing DHET Regional offices15,0009,000 33,000 Expansion of Subsidies to Fully Fund NSFAS Grant Holders1,738,0002,069,0002,476,0006,283,000 University Block Grant770,000910,0001,075,0002,755,000 Establishment of Universities in Mpumalanga and Northern Cape155,000275,000384,000814,000 Infrastructure and Output Efficiency Grant187,0001,344,0001,540,0003,071,000 HEAIDS49,00053,00058,000160,000 Support for the Additional Enrolment Projections in the public FET Colleges3,448,0004,040,0005,938,00013,426,000 FET Colleges NSFAS502,000728,0001,026,0002,256,000 FET Colleges Examination58,00085,000119,000262,000 Implementation of the Newly Established Quality Council for Trade and Occupations22,50031,80031,30085,600 TOTAL MTEF FUNDING REQUIREMENT (3-years)7,052,4499,647,11012,764,18429,463,743 12

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