1. VOTE 16: HIGHER EDUCATION AND TRAINING
Presentation on:
Expenditure progress 2010/11
2010 MTEF: 2011/12 Allocations
2011 MTEF
12 October 2010

2. Presentation Structure
Budget versus expenditure 1 April 2010 to 30 September 2010
2010 MTEF Allocations: Projections up to 31 March 2012
2011 MTEF Process

3. PART 1 BUDGET VERSUS EXPENDITURE 1 APRIL 2010 TO 30 SEPTEMBER 2010
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

4. EXPENDITURE PER PROGRAMME (EXCLUDING DIRECT CHARGES)
2010/11
Total per programme
 ENE
(R’000)
EXP
(R’000) 
% SPENT
P1: Administration
35 745
35.6
P2: Human Resource Development, Planning and Monitoring Coordination
26 004
9 355
36.0
P3: University Education
77.7
P4: Vocational and Continuing Education and Training
51.6
P5: Skills Development
70 662
42.0
Total Allocation
72.9

5. Economic Classification (R’000)
2010/11
(R’000)
Expenditure
% Spent
(%)
Compensation of employees
53 .3
Goods and services
35 467
23.1
Transfers and subsidies
73.4
Machinery and equipment
9 833
970
9.9
Total
72.9

6. Detail of earmarked allocations/transfers (R’000)
2010/11
ENE
(R’000)
EXP
% SPENT
Transfers to Universities
77.5
Transfers to Public Entities
78.0
NSFAS
79.2
CHE
36 046
18 023
50.0
SAQA
41 335
20 668
Other Transfers
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
52.1
Households  -
267
Earmarked Funds
25 551
1 988
7.8
Office Accommodation

7. 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
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
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.

8. 2010 MTEF ALLOCATIONS: PROJECTIONS UP TO 31 MARCH 2012
PART 2
2010 MTEF ALLOCATIONS: PROJECTIONS UP TO 31 MARCH 2012
TREASURY ALLOCATIONS
2010/11
2011/12
R'000
Baseline allocation
Additions to baseline:
Higher Education Subsidies -
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)*
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
2 201
2 568
Function Shift: Direct Charges
Sector Education and Training Authorities
National Skills Fund
Less:
( 1 246)
Baseline Efficiency Savings
2010 ENE ALLOCATIONS
Excluding Direct Charges     8

9. Allocation per programme
 2010/11
(R’000)
2011/12
(R’000) 
P1: Administration
P2: Human Resource Development, Planning and Monitoring Coordination
26 004
28 794
P3: University Education
P4: Vocational and Continuing Education and Training
P5: Skills Development
Total Allocation 9

10. Allocation per Economic Classification
2010/11
(R’000)
2011/12
Compensation of employees
Goods and services
Transfers and subsidies
Machinery and equipment
9 833
6 007
Total 10

11. PART MTEF PROCESS
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

12. Total Funding Proposal over the 2011 MTEF
PRIORITY AREA
2011/12
2012/13
2013/14
Total
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
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
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 12 12

13. 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 -