Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Bhutan, education budgets are largely guided by the Ministry of Education and Skills Development (MoESD) and aligned with the country’s Five-Year Development Plans (FYPs). The Twelfth Five-Year Plan (2018–2023) decentralised education budgeting, granting local governments authority to oversee basic education delivery in districts (dzongkhags) and municipalities (thromdes) in consultation with the central government.
The MoESD administers central funds to improve education quality nationally, addressing four key strategies: transforming curricula and programmes, developing the educational workforce, building fit-for-purpose infrastructure, and enhancing education governance. Additional resources are allocated to local governments through the Resource Allocation Framework (RAF), which determines funding based on multiple criteria. Funds must be spent in line with the FYP’s seven Local Government Key Result Areas (LGKRAs), including “quality education and skills development.”
The local budgeting process involves collaboration between district and municipal education offices, the MoESD, and the Ministry of Finance. Articles 15.2 and 15.3 of the 2019 National Education Policy mandate a financing model that enables effective and equitable distribution of resources, considering gender, special educational needs, vulnerable youths, geographic diversity, and socio-economically disadvantaged communities.
The annual education budget for local governments is distributed monthly through the MoF’s central financial database and linked to the FYP and the Annual Performance Agreement signed by the Prime Minister’s Office and implementing agencies. The Performance Management Division monitors implementation quarterly, and the Royal Audit Authority conducts annual audits of the logistical and financial processes.
1. Education resources to subnational governments
Resource Allocation Formula (RAF)
Resources are allocated to local governments through the Resource Allocation Formula (RAF). The RAF allocates resources to local governments based on several factors, including poverty index, resident population, geographic area, transportation costs from the nearest motorable road-head, health, education, safety, environment, and the Gross National Happiness (GNH) Index. Annual Grants Guidelines state that funds must be spent in accordance with the FYP’s seven Local Government Key Result Areas (LGKRAs), the second of which is “quality education and skills development”.
2. Education resources to schools
National Education Policy (2022 Draft)
The 2022 National Education Policy (Draft) states that “special provisions and considerations shall be made for schools with exceptional circumstances, such as extreme remoteness, high altitude, and socio-economically disadvantaged communities”. However, the 2023/4 Budget Report does not specify how government resources are distributed to support these vulnerable groups.
Ten-Year Roadmap for Inclusive and Special Education (2019)
The 2019 Ten-Year Roadmap for Inclusive and Special Education outlines the development of a funding formula to ensure equitable distribution of resources for managing additional costs associated with disabilities and inclusion. The ECCD & SEN Division is tasked with designing the formula at the local (Dzongkhag/Thromde) level, taking into account the number of schools, distances between them, and data on children with disabilities. School-level funding will be determined based on the number and needs of children with disabilities and planned inclusive education activities, with clear criteria and application processes. Funding for individuals and families will address barriers to education, including travel costs to specialised institutions or assessments, to promote equitable access. The 2024–2029 Thirteenth Five-Year Plan further recommends allocating resources to expand inclusive education and increase the number of schools offering SEN programmes.
Extended Classrooms (ECRs)
Extended Classrooms (ECRs) were introduced to enhance access to formal education in remote, rural, and dispersed villages, where long travel distances can hinder attendance. ECRs serve as extensions of a nearby parent school and operate in various community settings, including temples, learning centres, non-formal education facilities, outreach clinics, village residences, and temporary classrooms. They typically use a multi-grade format with limited enrolment per grade. The parent school oversees administration, provides teachers, and supplies educational materials to support ECR operations.
3. Education resources to students and families
The government provides scholarships for all students completing Class X to be automatically promoted and admitted to Class XI in public and private high secondary schools.
4. Social policies and family support programmes
No information was found.
5. School meal programmes
National School Feeding and Nutrition Programme
The School Feeding Programme was launched in 1974 with support from the World Food Programme (WFP). In 2019, the Royal Government assumed full responsibility for the programme, renaming it the National School Feeding and Nutrition Programme. The programme is now fully financed by the government, with ongoing technical assistance from WFP. Originally designed to increase school enrolment and retention, the programme’s focus has expanded to enhance student health and nutrition, while also linking farmers with schools to provide fresh food and support the local economy.
Management of the programme falls under the Ministry of Education and Skills Development’s School Health and Nutrition Division. Schools receive a monthly stipend for each student and are provided with nine non-perishable food items, including rice, lentils, and milk powder. These items may be fortified with nutrients such as iron and zinc to improve their nutritional value. Schools then use the stipend to purchase fresh produce, including vegetables, fruits, and proteins. The programme serves students across primary and secondary schools, Extended Classrooms (ECRs), and special education institutes.
This profile was reviewed by Dr Gembo Tshering, Royal University of Bhutan.
