The Department of Higher Education and Training has extended the deadline for public comment on its proposed tertiary education funding model.
The public now has until March 31 to comment on the Ikusasa Student Financial Aid Programme to fund "missing middle" and poor students.
The model was developed last year by the higher education ministerial task as a private and public sector financing collaboration. It has so far been piloted at Tshwane University of Technology‚ Orbit TVET‚ University of Cape Town‚ University of Pretoria‚ University of Venda and the Walter Sisulu University.
While the government has approved the piloting of the model at some schools‚ it has not yet been finalised and fully implemented.
"We are conducting a detailed feasibility study in terms of National Treasury regulations‚ collating and considering public comments for incorporation in the model‚ before submitting the final proposed model for cabinet approval later this year‚" said Sizwe Nxasana‚ head of the task team.
"The feedback is ongoing. There have been many positive comments‚ suggestions for improvement in various areas and some criticism as well‚ especially from those people who are arguing for completely free higher education for all‚" said Nxasana.
Should the model be approved‚ government will be pledging for the first time to fund students from middle-class families with incomes below R600,000 a year to the tune of about R42bn.
In the budget speech last week, Finance Minister Pravin Gordhan said: "Government stands ready to engage with education stakeholders and adapt financing arrangements as may be required in future years‚ within the scope of available resources".
He said the government recognised needs expressed by students in universities and TVET colleges. An extra R5bn would be allocated on top of the R32bn of funds already allocated for higher education student funding over the medium term.
But Efficient Group chief economist Dawie Roodt Efficient Group said: "I don’t believe it’s going to be R40bn. I believe it’s going to be significantly less than that because a shock like this to the system simply cannot be absorbed.
"It will be a long period of time before we get that ... it will be a gradual process."
Roodt said the funds could come from two sources. "The first one is‚ of course‚ you need to increase certain taxes and the second source is that you have to rechannel money, take money away from existing expenses and spend it on this specific item. Those are the only two options available.
"Unfortunately‚ the reality is that the state finance at the moment is in such deep trouble‚ that neither of those two options is really that easy. It’s extremely difficult to cut back on state spending for political reasons. It’s extremely difficult to collect more revenue‚ simply because the economy is not doing well.
"So‚ I’m afraid it’s going to be extremely difficult to get more money."
University of Johannesburg economics professor Hinaunye Eita said: "Additional revenue between R23bn and R24bn needs to be raised. To raise that‚ you would have to raise some taxes because that is the main source of government revenue."
Roodt said that would not be feasible in the long run as the tax would eventually form a part of the greater pool of taxes, and that would be counterintuitive.
"To earmark a specific tax for this is usually not a good idea. We’ve tried it in the past. The moment you earmark a specific tax for a specific expense item that tax becomes part of the pool [of taxes] eventually."
TMG Digital
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