OECD (2000)

Public Funds by Level of Government
The division of responsibility for funding primary/secondary/postsecondary
non-tertiary education varies much more between OECD countries
than it does at the tertiary level. In many countries, the funding of primary,
secondary, and post-secondary non-tertiary education shows much more
decentralisation. In general, countries can be grouped according to the
percentage of public funds generated and spent by central, regional and local
governments.
Four basic patterns can be observed:
– In the Czech Republic, France, Greece, Ireland, Italy, the Netherlands
and New Zealand the central government is the source of the majority of
initial funds as well as the main final spender. In both New Zealand and
Portugal 100 per cent of funds are raised and spent by central
government.
– Central government is the main initial source of funds, but regional or
local authorities are the main final purchasers of educational services in
Austria, Hungary, Korea, Mexico and Poland. In Korea 92 per cent of the
initial funds originate from central government but regional governments
are the only spender.
– Regional governments are both the main initial sources and the main
final spenders of educational funds in Australia, the Flemish Community
of Belgium, Germany, Japan, Spain and Switzerland, although in
Australia, Japan and Spain between 24 and 44 per cent of funds are
generated by central government.
– In Canada and the United States, regional governments are the main
initial source of funds, but in these countries local authorities are the
main final purchasers of educational services, with regional governments
spending 15 and 1 per cent of funds respectively.
In the United Kingdom, Norway, Iceland, Finland, and Denmark, local
authorities are both the main initial source of funds and the main final
purchasers of educational services.
While in the majority of OECD countries education funded from public
sources is also organised and delivered by public institutions, in some countries,
a considerable amount of final funds are transferred to governmentdependent
private institutions. In other words, the final spending and delivery
of education is sub-contracted to non-governmental institutions (Table B6.2).
On average across OECD countries, 10 per cent of primary, secondary, and
post-secondary non-tertiary and 11 per cent of tertiary public funds designated
for educational institutions are spent in institutions that are privately
managed. In the Netherlands, where central government is the major final
source of funds, 75 per cent of public funds for primary, secondary, and postsecondary
non-tertiary educational institutions and 47 per cent of public funds
for tertiary institutions are transferred from central government to governmentdependent
private institutions. In the Flemish community of Belgium, 63 per
cent of the funds for educational institutions are transferred to governmentdependent
private institutions at the primary, secondary, and post-secondary
non-tertiary levels and 48 per cent at the tertiary level. In the United Kingdom,
100 per cent of public funding of tertiary education is spent in governmentdependent
private institutions.
Countries differ in the
division of responsibility
for funding primary,
secondary,
and post-secondary
non-tertiary education.
Central government
is both the main initial
source of funds and
the main final spender
on education.
Central government
is the main initial
source but funds are
transferred to regional
or local authorities.
Regional authorities
are both the main
initial sources
and the main final
purchasers.
Funding responsibilities
are shared between
regional and local
authorities.
An alternative form
of final spending is
the transfer of public
money to private
institutions.
In the Flemish
Community of Belgium
and the Netherlands,
a considerable
proportion of public
funds are transferred
to private institutions.
B6
© OECD 2000
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