Sustainable Education Financing | Asian Development Bank

Sustainable Education Financing in Asia and the Pacific

Sustained investments in education are important for the productivity and resilience of economies. Funding for education is provided not only by the state, but also by households and the private sector. The contribution of different actors is dependent on the country's sector policies.

A large share of public sector budgets for basic and secondary education goes toward teacher salaries, with insufficient public sector funds remaining for inputs such as textbooks, teacher training, and developing school management that would improve the quality of education.

Higher education faces resource constraints and competing priorities. It is critical that governments explore new approaches to financing quality higher education, such as private sector partnerships, giving public higher education institutions greater autonomy and more responsibility for raising funds, and developing their capacity to manage their financial affairs.

In the case of technical and vocational education and training (TVET), public financing can cover only part of the costs. A sustainable solution involves shifting the role of skills training away from government to the private sector while strengthening the public sector's role in regulating TVET.