DBE says slow economic growth to blame for current funding crisis

JOHANNESBURG - The Department of Basic Education has blamed a slow economic growth rate and low tax revenue for its current funding crisis. 

Like most government departments, the education department has faced massive cuts to its budget due to the Treasury’s austerity measures. 

For the education department, this has led to provinces having to release contracted teachers and unable to fill several vacant posts. 

READ: DBE's financial crisis 'translates to fewer teachers, reduced textbooks', reveals Minister

In a media briefing on Wednesday, Basic Education Minister Siviwe Gwarube said several factors had contributed to this crisis. 

“Our economy has been stagnant for almost a decade. Growth rates have remained below 1% in real terms, which is far below what is needed to generate sufficient tax revenue to fund public services including education. Without a growing economy, government revenue will shrink and so do our budgets.”

Gwarube said corruption and mismanagement of public funds had exacerbated the issue. 

"Between 2014 and 2023, South Africa had lost an estimated R1.5 trillion in economic value to corruption - money which could have been used to build schools, pay teachers, improve learning conditions, instead it was used to line the pockets of a few."