Budgetary Allocation and Access to Education in South Africa

Abstract

Since the early 1990s, South Africa has undertaken significant reforms to transform its educational system through increased budgetary allocations to enhance access to quality education. While it is well established that adequate budgetary support can improve educational access, detailed empirical studies specifically examining the effect of these allocations on educational access in South Africa are limited. This study aims to analyse the impact of budgetary allocations on education access within the country, drawing on the Keynesian proposition that government spending is crucial for promoting economic prosperity and financing educational investments. Utilising the fully modified least squares (FMOLS) method, the study finds that budgetary allocations and domestic investment have a positive and substantial impact on increasing access to education in South Africa. Conversely, per capita income was found to have a significant inverse relationship with education access in the country. Based on these findings, it is recommended that the government continue prioritising educational access, given its direct impact on human development. Additionally, enforcing compulsory schooling laws is essential to address the issue of the rising number of out-of-school children. By doing so, every citizen will have the opportunity to contribute to the country's sustainable growth and development.