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 Uzbekistan, public education is funded through three tiers of the state budget: central, regional, and local. The central or republican budget covers higher education institutions, educational establishments, and academic lyceums linked to universities. The regional budget supports vocational colleges and academic lyceums not affiliated with higher education institutions. The local budget finances operating costs of pre-schools, general schools, and specialised schools. Each local administration prepares an annual budget based on projected revenues and expenditures. Regional and local authorities estimate student enrolment, calculate service costs, forecast tax revenues, and identify funding gaps. When deficits occur, the central government provides subsidies. The Ministry of Economy and Finance consolidates these budgets and ensures the necessary allocations from the central level.
Education institutions may also generate income through contracts for training, retraining, and professional development, including partnerships with foreign entities, as well as commissioned research, educational-methodological work, and other lawful services. Income can also arise from sales of products and services, rental of facilities and equipment, interest on deposits, allocations from state and local authorities, bank loans and credits, and charitable contributions from individuals and organisations. Education Development Funds may also be established to support educational activities. These funds are formed through contributions and deductions from government agencies, private entities, individuals and other legally permitted sources.
1. Education resources to subnational governments
Inter-Budgetary Transfers
The allocation of central government funds to local budgets is managed through the inter-budgetary transfer mechanism, overseen by the Ministry of Economy and Finance. This process identifies fiscal shortfalls at the regional level and redistributes resources to ensure balance. Equity is promoted through formula-based approaches that consider demographic structure, expenditure needs, and revenue gaps. These criteria provide higher per-capita allocations in rural and remote areas and direct targeted transfers to support students with disabilities and inclusive education initiatives
2. Education resources to schools
State Budget Allocations under the 2025 Law
The 2025 Law on the State Budget specifies allocations for updating textbooks, modernising school facilities, providing equipment and materials, supporting extracurricular activities, and subsidising preschool organisations through public-private partnerships. Expenditures include costs for updating textbooks in general secondary education institutions, forming the Education Reform Assistance Fund, establishing the Minister of Preschool and School Education Fund, updating outdated computer classrooms, providing sports equipment to institutions under the Ministry of Preschool and School Education, supplying national musical instruments to secondary schools, and delivering didactic materials and tablets to state preschool educational organisations. Funds are also allocated for organising clubs in secondary schools, particularly involving children from families registered as poor, and for subsidising preschool educational organisations established through public-private partnerships.
Infrastructure Modernisation
In 2024, as part of the Sustainable Rural Development Project under the Joint Project Implementation Unit of the Ministry of Economy and Finance, four interactive smart boards and 60 computers were delivered to rural schools, providing teachers and students with access to modern educational resources and tools.
Project Preparation Special Fund (PPSF) grant
In addition to the government budget, the Asian Infrastructure Investment Bank (AIIB) provides a USD 5 million Project Preparation Special Fund (PPSF) grant to assist the Ministry with preparatory activities for expanding and modernising public education infrastructure. This includes building new schools, renovating existing facilities, and procuring modern educational tools.
3. Education resources to students and families
Student Benefits and Scholarships
Students enrolled in educational institutions are entitled to benefits, scholarships, and temporary housing in line with the Education Law.
Tax Exemption for Private Education
In 2022, a Presidential decree exempted monthly payments of up to 3 million soums made by parents to non-state preschool institutions and private schools from income tax.
Free Transport for Remote Students
Under a 2024 Presidential Decree, an experimental programme was launched to provide free bus transportation for secondary school students living in remote areas of the Kashkadarya and Surkhandarya regions.
4. Social policies and family support programmes
Social Protection for Vulnerable Children
In accordance with the Education Law, children from economically disadvantaged households and individuals with physical, cognitive, or sensory disabilities are entitled to social protection.
The 2025 Law on the State Budget allocates funds to the National Agency for Social Protection, with 71% designated for social benefits and targeted assistance programmes. These include funding for child benefits and material support to low-income families, benefits for children with disabilities, assistance for citizens unable to work and mothers caring for children with disabilities, one-time financial support for needy families in Karakalpakstan and Khorezm, and expenses for providing housing for orphans and children deprived of parental care. These allocations are consistent with a 2024 Presidential Decree aimed enhancing the social protection system. In August 2025, the Agency provided financial assistance to low-income families, primarily through child benefits and targeted material support. Most recipients received their payments via bank cards, while the rest were served through the People’s Bank’s mobile cash desks.
5. School meal programmes
Uzbekistan has introduced a government-financed school meal programme aimed at achieving universal access. Building on a 2022/23 pilot implemented in the Aral Sea regions of Karakalpakstan and Khorezm under the 2022–2026 Development Strategy, which reached 276,100 students, the programme was expanded nationwide in 2023/24 to cover all primary school students (grades 1–4). This nationwide rollout was mandated by a 2023 Presidential Decree.
Unlike targeted models, the programme is categorical rather than poverty-based, ensuring that every primary schoolchild receives meals irrespective of household income. The Ministry of Preschool and School Education oversees implementation, with financing from the state budget and coordinated support from the health, agriculture, and regional authorities. Procurement is conducted domestically, reflecting the country’s food security objectives and prioritising the use of locally produced goods.
