KwaZulu-Natal's education sector has received a R2 billion cash flow advance from National Treasury, providing temporary relief amid ongoing financial challenges.
KwaZulu-Natal’s embattled education sector has received temporary financial relief after National Treasury approved a R2 billion cash flow advance to the provincial Department of Education, amid mounting concerns over unpaid school allocations, historic debt and widening budget pressures.
The Mercury reported this week that the provincial treasury has upped its intervention measures for the department. The Provincial Accountant-General (PAG) has been permanently placed within the Department of Education with full authority to oversee all financial administration functions.
KwaZulu-Natal Education MEC Sipho Hlomuka stated that the department had repeatedly raised concerns with national government about worsening financial pressures caused by years of austerity measures and budget cuts amounting to R28 billion since the 2020/21 financial year.
The department described the intervention as a “cash flow advance in the form of a repayable front-loading”, stressing that it was not a new allocation and would be offset against the current financial year’s budget.
