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Cabinet officials

South Africa's 2025 Budget Cuts Deep into Education and Health Funding

Strategic Insights

— 2 min read

Finance Minister Enoch Godongwana's latest Budget slashes billions from proposed education and health funding, sparking alarm among experts. The cuts in teaching posts and hospitals under pressure have raised concerns about the urgent demands of two of South Africa's most critical public sectors. Despite some welcome funding priorities, civil society leaders from the health and education sectors remain cautious, citing longstanding constraints and structural problems in these key service areas.

Key Takeaways:

  • The 2025 Budget has trimmed the basic education allocation for 2025/26 to R329.2-billion, down from the R332-billion proposed in March, with a broader learning and culture sector also seeing a cut, dropping from R508.7-billion to R505.6-billion.
  • The funding for teaching posts has been slashed to R9.5-billion, less than half of the R19.1-billion initially earmarked to support 11,000 positions, with KwaZulu-Natal facing the threat of losing up to 19,000 posts, and the Western Cape beginning the year with more than 2,400 contract teachers cut.
  • The R10-billion additional allocation for Early Childhood Development (ECD) remains unchanged but has increased the subsidy from R17 to R24 per day per child, which is a welcome funding priority.
  • The National Student Financial Aid Scheme (NSFAS) will receive 4-billion, while the skills development levy will get 9-billion, with education administration receiving 6-billion and technical and vocational education and training getting 2-billion.
  • The health sector has received a "long-overdue boost" with an increase in total health spending from R277-billion in 2024/25 to R296-billion in 2025/26, growth of 2.5% in real terms.
  • SECTION27 notes that the health facility revitalisation grant, which funds critical infrastructure, receives only a 1.3% nominal increase in 2025/26, marking a 2.75% real-terms reduction.

Statistics:

  • 4-billion for the National Student Financial Aid Scheme (NSFAS).
  • 9-billion for the skills development levy.
  • 6-billion for education administration.
  • 2-billion for technical and vocational education and training.
  • 11,000 teaching positions will be supported, down from the initially earmarked positions.
  • 19,000 teacher posts are at risk in KwaZulu-Natal.
  • 2,400 contract teachers were cut in the Western Cape.
  • 2.5% real growth in total health spending from R277-billion in 2024/25 to R296-billion in 2025/26.
  • 1.3% nominal increase in the health facility revitalisation grant in 2025/26.

Sources:

  • Enoch Godongwana's 2025 Budget speech.
  • SECTION27's research on the 2025 Budget.
  • Russell Rensburg, director of the Rural Health Advocacy Project (RHAP).
  • Mary Metcalfe of the National Planning Commission.
  • SECTION27's report on the health sector's funding.

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