Well, they are extending the school day to make up for it. I can actually see other reasons behind this other than saving money on transportation and such, though.
Interesting, if they lengthen the general school day to be longer to make up for the total lost time, it should be roughly equivalent. However, the teachers kid in me knows that children have trouble focusing for that long in school and that longer days has a significantly diminished effect. However, with longer days, I fail to see how they are really saving much money. The biggest cost being payroll will still be there as the teaching hours will be longer.
Seriously though, any country that can afford anything else but not have enough money for its schools needs to seriously re-asses its priorities.