Gigaba: Higher education fees decision must be fiscally sustainable
Finance Minister Malusi Gigaba says that National Treasury is waiting for the president and Cabinet to decide on higher education fees.
CAPE TOWN - Finance Minister Malusi Gigaba says that whatever decision is taken on higher education fees, it must be fiscally sustainable so it does not cause chaos in the budget process.
Gigaba was asked whether tertiary fees would fall and his position on the Heher Commission’s inquiry in the National Assembly on Wednesday.
The Finance Minister says that President Jacob Zuma is still studying the report and will make an announcement.
Gigaba says that National Treasury is waiting for the president and Cabinet to decide on higher education fees, and will then outline steps to be taken to finance whatever options have been chosen.
“The instruction clearly from the president and from Cabinet is that whatever option must be fiscally sustainable so that it does not cause chaos in the budget process.”
Gigaba also told Members of Parliament that Cabinet has decided on spending cuts of R25 billion and to raise R15 billion in revenue next year.
“Cabinet has taken a decision that we need to implement fiscal consolidation measures which will see 0.8% of GDP injected into the budget next year, which amounts to R40 billion in order to stabilise our debt and ensure it does not balloon beyond 60% of GDP in 2022.”
Details will be announced in the budget in February.
(Edited by Leeto M Khoza)