Explainer: Education ministry responds to budget overspend claims

The Ministry of Education has moved to clarify claims circulating in the media and on social media that it overspent its budget during the 2024–2025 financial year.

According to the Minister for Education, the claims have led to misunderstanding about how the Ministry’s budget was allocated, adjusted and spent.

What was the Ministry’s original budget?

The Ministry was initially allocated $651 million for the 2024–2025 financial year.

However, the Ministry of Finance later redeployed $14.3 million of that amount to other ministries. This reduced the Ministry of Education’s available budget to $636.7 million.

How much was the actual overspending?

The Ministry of Finance sought Cabinet approval for a $23.8 million write-off, which was described publicly as an over-expenditure by the Ministry of Education.

The Ministry says this figure was a forecasted amount requested to complete the 2025 financial year, not the final overspend.

Following internal checks, the Ministry determined that the actual over-expenditure was $18.7 million.

The Ministry added that if the $14.3 million had not been redeployed, the over-expenditure would have been $4.4 million.

Why did the variance occur?

The Ministry attributed the variance to essential and unavoidable costs, including:

• $2.3 million for salary upgrades for 296 officers following qualification upgrades, in line with ministerial policy.
• $3.6 million in acting allowances paid under Public Service Commission regulations when staff were temporarily replaced due to medical, maternity or study leave.
• $0.5 million for the recruitment of 13 school chaplains, approved by Cabinet in 2023 but not budgeted for.
• $4.0 million linked to the implementation of PSC Circular 2/2024, which required the regularisation of staff in acting positions. Although funding was provided in the 2023–2024 year, it was removed from the 2024–2025 budget. The Ministry sought and received Ministry of Finance approval to redeploy funds internally to continue payments.
• $7.0 million for salary step-up adjustments for 4,731 regularised staff, also under PSC Circular 2/2024. This cost was previously funded but removed from the 2024–2025 budget.
• $0.2 million in overtime payments, mainly for non-teaching staff.
• $1.1 million resulting from the reinstatement and upgrading of senior positions such as Director Curriculum Advisory Services, Director TVET, and Director Primary and Secondary, which were unbudgeted for under the current structure.

Staffing and rehiring issues

The Ministry also acknowledged that:

• Over 500 new teachers and more than 30 curriculum advisory staff were appointed without full reconciliation against approved posts, leading to over-hiring.
• Some staff were rehired, including teachers previously terminated under the “No Jab No Job” policy, teachers who won corporal punishment court cases, and staff returning following the extension of the retirement age to 60.

The Ministry says these issues are now being urgently addressed to prevent future budget overruns.

Court ruling on regularisation

The Ministry confirmed that a court decision in 2025 ruled the regularisation exercise within the Ministry to be irregular under the law.

The Ministry has since sought legal advice from the Solicitor-General’s Office and is working with teacher unions to resolve the issue amicably.

Minister’s response to public criticism

The Minister for Education said much of the public commentary had been misleading and politicised, particularly on social media.

He said such narratives undermined good governance and demoralised teachers and staff.

The Minister also said the Ministry had recruited external human resource and finance professionals to address long-standing weaknesses, noting past situations where staff without HR or finance qualifications were placed in critical roles.

He said the Ministry faced daily complaints from teachers, unions and school stakeholders over issues such as unfair postings, poor recognition of qualifications, inconsistent transfers and promotions, and staffing shortages.

Audit and next steps

The Minister confirmed that a special audit by the Ministry of Finance has been completed, and the Ministry is awaiting feedback.

He said addressing historical problems would take time but stressed that the focus remained on supporting teachers and improving student outcomes.

The Minister thanked the public for its support and extended well wishes to students, teachers, parents and guardians for the new academic year.