Today's Big Stories

Shaving SANDF budget could help govt fund varsity fees - economist

Economist Thabi Leoka proposes that in order to re-prioritise national expenditure and accommodate free university fees, Treasury would have to cut the budgets for the South African National Defence Force, as well as from public safety spending.

According to Leoka, approximately R52 billion is devoted to the Defence Department from South Africa's R1.4 trillion overall budget.

I think that we need to look internally.. I think that that budget can go elsewhere, especially towards education.

Thabi Leoka, Economic Strategist at Argon Asset Management

Leoka adds that Treasury would have to fork out at least R2 billion in order to avoid a fee increase for 2017.

In addition, she says the country's education system needs to be overhauled and that technicons should be re-introduced.

Leoka has also expressed her sadness at what she calls the attack on the National Treasury and Finance Minster Pravin Gordhan, in particular.

She says that Treasury continues to be undermined, despite the key role it plays in consolidating spending and shrinking the fiscal deficit.

Leoka believes that South Africans can all benefit from the economy for inclusive growth, if the spending and management of the country is prioritised.

Listen to the full conversation (with Friday Stand-In Songezo Zibi):


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