Finance Minister Pravin Gordhan's focus on education in the national Budget was welcomed by the National Youth Development Agency on Wednesday.

"The NYDA applauds the minister for once again prioritising education by increasing the allocations made to the National Student Financial Aid Scheme by R1.5 billion from R5.1bn last year to R6.6 billion in 2016/17," it said in a statement.

The agency also welcomed the Budget's emphasis on entrepreneurial development, education and skills development.

"During 2013, the NYDA changed focus from loan finance to grant finance in support of micro enterprises and thus welcomes Minister Pravin Gordhan's announcement to provide tax relief to organisations involved in supporting entrepreneurs through grants."

Chairman Yershen Pillay said: "There have been many critics against the NYDA. However, if we look to the minister's budget speech, it is clear that the NYDA is on point in terms of our focus on education and skills development and our support of micro-enterprises through the NYDA grant programme."