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Higher Education Act, 1997 (Act No. 101 of 1997)

Notices

Funding of Public Higher Education (November 2003)

2. Division of the Higher Education Budget between Categories of Grants

 

(2.1) The government funding of higher education institutions will be based on two main elements:
• Block grants, which are undesignated amounts to cover the operational costs of higher education institutions linked to the provision of teaching and research-related services.
• Earmarked grants, which are designated for specific purposes.

 

(2.2) The allocation of block and earmarked grants will be determined by:
• The total quantum of public funds available in a given year for higher education.
• The teaching and research-related services, as well as other objectives, that the Government expects the public higher education system to deliver.

 

(2.3) The Minister of Education will determine the proportions of the higher education budget that are to be allocated to block and earmarked grants. The Minister will also determine the allocations to various sub-categories of the block and earmarked grants. The Minister will make these determinations annually within the context of the MTEF, that is, as three-year forward determinations. This implies that if changes were to be made to the proportions of the national higher education budget allocated to any category or sub-category, these would be implemented at the earliest in the third year of the next MTEF triennium.

 

(2.4) As is indicated in 1.11 above, the Minister will consult the higher education sector and the Council on Higher Education before any major changes are made to categories and sub-categories of the funding framework.