DHET & NSFAS 2020/21 Special Adjustment Budget, with Minister and Deputy Minister

The Department of Higher Education, Science and Technology and the National Student Financial Aid Scheme briefed the Committee on their adjustment budget allocations and the impact on delivery programmes. The Department explained that only “front-line” departments (health, defence, police and social development) had been spared from cutting their budgets by 20% to fund government’s COVID-19 response. In the case of the Department, this would have amounted to R19.5 billion. This would have had a serious impact on the whole higher education sector and as a result the final cut had been reduced to R9.857bn. R8.112bn of the budget cut originated in the skills development levy payment holiday which had been granted to all employers. An amount of R2.5bn had been re-allocated for the provision of student digital devices (such as laptops) but officials were concerned that the onerous conditions imposed would risk incurring irregular expenditure. The number of students funded by the National Student Financial Aid Scheme had increased by an unexpected 20% in 2020 and the surge was expected to increase still further in 2021. It was estimated that more than R4.3bn would be required to cover the costs of the extension of the academic year at universities and technical and vocational education and training colleges. The Scheme had also planned its outreach programmes to minimise large gatherings of applicants by using electronic communication channels. The Administrator was continuing to make good progress in the investigation of fraud syndicates. Committee Members were unhappy about the fact that the Department had not been declared a front-line department. They asked questions about the funding of Sector Education and Training Authority students, the estimated costs of the extension of the academic year, the R2.5bn earmarked for student devices and the concerns that this had raised. Engagements with presenters included the impact of the reprioritisation of infrastructure grants