Investor Presentaiton
14
Financing
Expenditure on education in the Czech Republic comes mainly from public funds: from the central stage
budget and from the budget of the territorial administrative units - regions and municipalities. Funds are also
raised from schools' economic activities and from schools' participation in international programmes.
Private schools
The funding of private schools is based on the same per capita principle as for public schools. Basic sub-
sidies (50-80% of the amount granted to similar public institutions, according to the type) can be raised
to 80-100% if the school meets a set of criteria. Denominational schools receive the same funding as
public schools directly from the MEYS. Private higher education institutions must be non-profit-making
to be eligible for a state grant.
Public education expenditure (2009)
8,881.2 mil. EUR
4.38%
Educational expenditure relative to GDP (2009)
Source: Eurostat
The funding mechanism changed fundamentally in 1992 from funding for institutions
to formula ('per capita') funding: amounts of non-capital expenditures per pupil/stu-
dent are set by the Ministry of Education, Youth and Sports (capital expenditures in not
funded on a 'per capita' basis).
Annual expenditure on public and private
educational institutions per pupil/student
4,621 EUR
European Union sources of financing
An important role for investments in education is played by the European structural funds,
especially the two listed below (for the period 2007-2013):
The Operational Programme Education for Competitiveness
Focusing on the enhancement and modernisation of initial, tertiary and further educational
systems, their interactions with a comprehensive system of lifelong learning, and on the
improvement of conditions in the area of research and development. The total amount
of EUR 1.83 million from the EU funds represents approx. 6.8 % of all financing intended
for the Czech Republic from the EU funds.
The Operational Programme Research and Development for Innovation
Focusing on the reinforcement of the research, development and pro-innovation potential
of the Czech Republic, in particular through universities, research institutions and their
cooperation with the private sector. It supports equipping of the research workplaces with
modern technologies, developing new research workplaces and increasing the capacity
of tertiary education. It is the fourth largest Czech operational program and EUR 2,070.68 million
has been allocated to it from the EU funds
(in 2009 in EUR, for all levels of education combined, PPS based on full-time equivalents)
Annual expenditure on public and private educational institutions
per pupil at the primary level of education (ISCED 1):
Annual expenditure on public and private educational institutions
per pupil at the secondary level of education (ISCED 2-4):
Annual expenditure on public and private educational institutions
per student at the tertiary level of education (ISCED 5-6):
Source: Eurostat
3,163 EUR (2009)
4,766 EUR (2009)
6,208 EUR (2009)
Principles for financing of schools and school facilities
founded by regions and municipalities
School funding comes from two sources: capital and running costs are covered by the
organising bodies (regions and municipalities from regional/municipal budgets), while
educational costs (salaries and teaching aids) are allocated from the state (central) budget
by the MEYS via the regional administrations. Funding is based on the per capita principle.
For schools, the per capita amount is determined centrally for 4 age groups corresponding
to the respective levels of education (ISCED 0-3, 5B) and distributed to regions according
to the number of pupils in the respective age group. Regions determine per capita amounts
for different schools.
Principles for financing of higher education institutions (HEIs)
Higher education institutions receive funds from the state budget for both their running
and capital costs. Higher education institutions receive a financial contribution according
to the number of students and graduates, the economic costingness of the relevant study
programme and certain quality and performance indicators. The MEYS is also used to fi-
nance HEIs through project grants. Part of the budget is also allocated to schools on the
basis of qualitative criteria. A new funding system currently under preparation will make
even more provision for HEI qualitative performance indicators.
€
Important sources for especially for the mobility
of students and teachers/academics are the EU
programmes or other financial tools such as the
Financial Mechanism EEA/Norway.
Adult retraining programmes are largely funded
from the Operational programme Human Re-
sources and Employment (under the responsibil-
ity of the Ministry of Labour and Social Affairs)
or the Operational programme Enterprise and
Innovation in the case of company employees.
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