Growth in education spending in South Africa is set to slow down significantly over the next three years, according to Treasury projections.

A total of R76-billion has been allocated to the provinces and the national education department for 2004/05, increasing to R81-billion next year (2005/6) and R86-billion in the final year of the medium term expenditure framework.

This represents an average annual growth over the 2003/04 figure of 7,2%, compared to 10,9% growth over the past four years.

Almost all other sectors will suffer a similar slowdown in the growth of their budgets.

Health, for example, drops from 12,1% to 8,4%, and welfare from 21,6 to 13,6.

However, Finance Minister Trevor Manuel has decided to set aside R1-billion more than the sum originally earmarked in the national education department's budget for the restructuring of higher education, bringing the three-year total for this purpose to R1,8-billion.

The national department's budget for 2004/05 will increase to R11,3-billion, up R860 000 on the 2003/04 estimate.

According to the Treasury estimates of expenditure, released yesterday, the department's spending is dominated by the higher education programme, projected to consume 87,1% of its budget over the medium term.

This reflects mainly transfers to higher education institutions and the National Student Financial Aid Scheme.

Another major item on the national department's budget is the primary school nutrition programme, which the department will take over this year from the health vote.

This has been allocated R838,2-million in 2004/05, growing to R918,2-million in 2005/06.

The department will also enjoy a "baseline adjustment" of R70-million in 2004/05 and R40-million in 2005/06, including provision for implementing the revised national curriculum statement, and writing and implementing the new Further Education and Training curriculum. – Sapa.