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
Argentina is a federal republic where provinces are responsible for most functions not delegated to the national government, including basic and secondary education. While provinces manage schools and pay teachers, they collect only a small share of tax revenues, as the central government raises about 80%. This creates a structural fiscal imbalance, addressed through the coparticipación federal system, which redistributes national revenues to provinces and municipalities, covering much of their education spending.
In this decentralized framework, the Ministry of Education (since 2023 part of the Ministry of Human Capital) sets national education policy, oversees the National Education Law, and funds targeted programmes to promote equity. Provinces and the City of Buenos Aires adapt curricula, run schools, and issue degrees—and carry the main financial burden. Laws 26.075 and 25.206established that provinces cover 75% of education spending, with the federal government funding the remaining 25%. Since tax collection is centralized, this setup reinforces fiscal imbalance.
To address it, the national government provides both automatic transfers through coparticipación and earmarked national education budgets (e.g. for textbooks, school meals or teacher training), as well as discretionary transfers, which are not legally mandated and are often used as political bargaining tools. To promote equity, Law 26.075 stipulates that 80% of national education programmes be allocated based on enrolment across levels and 20% on socio-economic criteria such as poverty, rurality, and the size of out-of-school populations.
1. Education resources to subnational governments
Coparticipación Federal de Impuestos (main transfer mechanism)
The national government collects about 80% of total tax revenues, while provinces raise around 16% and municipalities 4–5%. Through coparticipación, approximately 57% of national tax revenues are redistributed to provinces and 8% to municipalities, making it by far the largest source of subnational funding. These transfers are general-purpose and not earmarked for education, yet because education typically accounts for 35–40% of provincial budgets, they finance most teacher salaries and other recurrent school expenditures. Although indispensable for provincial education systems, the distribution of coparticipación is based on a long-standing political agreement rather than a transparent formula tied to educational needs, meaning that equity objectives are pursued mainly through the smaller, earmarked transfers established by Laws No. 26.075 and 25.206.
National Education Budget (direct investment):
In parallel, the Ministry of Education finances specific national programmes which include (1) National Education Programmes(No Salariales) based on policy priorities, targeting provinces, schools, or students to support specific educational goals: (2)targeted programmes (e.g., school feeding, textbooks, teacher training); and (3) Política Salarial: national salary policy transfers, which co-finance teacher wages in some provinces; Infraestructura y Equipamiento: funds for school construction and equipment.
These non-automatic, earmarked transfers are smaller in scale than coparticipación but crucial for equity, since they target specific priorities and disadvantaged areas (Ministerio de Economía – Presupuesto Abierto).
Education Financing Law (Law No. 26.075, 2005):
Article 8 established that national resources for provinces must be distributed with an equity criterion: 80% based on enrolment and 20% on socio-economic factors (10% poverty/rurality/vulnerable groups; 10% out-of-school population aged 3–17). This mechanism adds a redistributive layer to national transfers, directing more funds to poorer provinces such as Formosa or Misiones.
Federal education transfers to provinces, municipalities, and other groups are detailed by Education Function on the Open Budget website.
2. Education resources to schools
Proyecto de Mejoramiento de la Educación Rural (PROMER 1) (2005-2010)
In 2005, the Ministry of Education launched PROMER, a five-year project aimed at improving rural education. It focused on enhancing school resources such as textbooks, supplies, technology, and support for distance and indigenous education. The project also worked to expand preschool access, reduce dropout and repetition rates in primary and lower secondary levels, and strengthen provincial education departments. A smaller component aimed to improve national administrative capacity and support monitoring and evaluation. Implemented through bilateral agreements between the national and provincial governments, annual funding depended on each province’s progress, with support provided to underperforming provinces and possible funding reductions if issues persisted.
Proyecto de Mejoramiento de la Educación Rural II (PROMER II) (2015- 2021)
In 2015, the Ministry of Education launched PROMER II, a five-year project divided into three components. The first aimed to reduce grade repetition in rural classrooms by improving teaching quality, school management, and leadership through targeted training and providing appropriate equipment and materials. The second focused on increasing enrollment and graduation rates in rural secondary schools by expanding services, supplying equipment, and introducing innovative programs. The third strengthened project management, monitoring, and evaluation through coordination, planning, technical support, and quality assessments. Implementation is decentralised: the national Ministry of Education manages the budget and allocates funds to provinces based on an equity formula, while provincial ministries implement activities, draft annual plans, and adapt strategies locally.
Comprehensive Literacy Programme
In 2024, the Ministry of Education launched the Comprehensive Literacy Programme, supported by the Inter-American Development Bank (IDB) as part of a partnership with the World Bank to reduce the digital divide in regional education. The programme’s first component trains 390,000 teachers in reading instruction and extends instructional time. The second provides educational materials, including books for students with hearing and visual impairments, mobile libraries, and literacy kits, targeting vulnerable populations. The third strengthens national and local capacities for monitoring, coordination, and evaluation, enhancing multilevel governance. The programme’s equity focus is reflected in both content and funding, with resources directed to disadvantaged areas and disbursed through non-automatic, results-based transfers tailored to local needs.
Programme for the Improvement of Equity and Quality of Education (PROMEDU)
Created in 2015, PROMEDU aims to improve education system performance, increase school access and retention, strengthen monitoring for policy evaluation, and build and equip educational centers to promote equity and quality. The programmeemphasises territorial equity by targeting provinces with the highest levels of unmet basic needs (NBI). While Subprogramme I supports vulnerable students nationwide, it focuses mainly on disadvantaged provinces. Subprogramme II is dedicated exclusively to the Norte Grande (Noroeste Argentino) and Nordeste Argentino regions, both facing persistent structural inequalities.
3. Education resources to students and families
In 2024, the Ministry of Human Capital started an educational voucher programme (Decree 61/2024), run by the Secretariat of Education. It gives temporary financial aid to vulnerable families with children up to 18 years old attending privately managed public schools funded 75% by the state. Voucher amounts depend on school fees, averaging ARS 10,648.48 monthly—around ARS 10,396 for Primary, and ARS 11,041 for Secondary education. Families must have lived in Argentina for over two years and earn less than seven times the Minimum Living and Mobile Salary (ARS 234,315.12). Eligible families need to apply formally to get the voucher.
PROGRESAR Scholarship programme
In 2014, the PROGRESAR scholarship programme was established by Decree No. 84/12 to support academic and professional training and promote school retention. It is structured into three components, including PROGRESAR Obligatorio for students completing secondary education. The programme has a strong equity focus. To access PROGRESAR Obligatorio, students must be aged 16 to 24, belong to households earning less than three times the national Minimum Living Wage (SMVM), attend school regularly, show academic progress, and participate in programme activities. Exceptions apply for recipients of non-contributory disability pensions.
4. Social policies and family support programmes
Asignaciones Familiares Universales para la Protección Social
Institutionalised family allowance schemes in Argentina began in 1957 with the creation of the Cajas de Subsidios Familiares(Family Subsidy Funds), initially covering the commerce sector and later extending to industry and stevedoring. In 1969, Law 18.017 unified and standardised the system, expanding benefits to help households manage the financial demands of growing family size. The Family Allowance per Child became universal for registered salaried workers, offering monthly payments for each child under 18. In 1991, after the dissolution of the Family Subsidy Funds, the contributory family allowance system was transferred to the National Social Security Administration (ANSES), maintaining its contributory character. Law 24.714, enacted in 1996, established two subsystems: a contributory one for private-sector employees, occupational injury and unemployment insurance beneficiaries (excluding domestic workers), and a non-contributory one for retirees and recipients of non-contributory pensions. It also introduced an income threshold and classified workers into three income brackets. From 2009, Argentina launched four targeted family allowance programmes to support households outside the formal labour market, addressing informality, unemployment, and low income. They include the Asignación Universal por Hijo (Universal Child Allowance) and the Ayuda Escolar Annual (Annual School Aid).
Universal Child Allowance (AUH), established in 2009 by Decree 1602, is a non-contributory monthly cash benefit managed by ANSES to support vulnerable families with children under 18 or with disabilities (no age limit for disabilities). It targets informal workers not registered in social security, low-income earners, and unemployed workers without unemployment insurance. Families receive 80% of the benefit monthly, with the remaining 20% conditional on children’s school attendance and health checkups. Benefit amounts vary by family income and geographic location to ensure equity, with higher payments for children with disabilities, particularly in provinces like Buenos Aires, Córdoba, Santa Fe, and the Autonomous City of Buenos Aires.
The Annual School Aid programme, established in 2014 through Decree 185/2014, aims to expand the Family Allowance system’s reach. It provides a one-time yearly payment to one parent of each school-age child between 4 and 16 years old enrolled in kindergarten, preschool, primary, or secondary school. Payments are made automatically once school enrollment certificates are submitted to ANSES. The funds must be used for educational materials and activities, with the payment amount adjusted based on family income and geographic location to ensure financial equity.
5. School meal programmes
School meal programmes in Argentina are managed by the provinces, while the national government provides the legal framework and funding for policies designed and implemented locally. In 2024, through several decrees (Resolución 66/2024, 196/2024, and 836/2024), the Comedores Escolares (school meal services) programme was established to support and enhance meal services in public schools. It focuses on children aged 4 to 14 in vulnerable socio-educational settings and requires provinces to submit detailed plans—including school lists, enrollment data, nutritional goals, and menus—to receive national funds. The programme finances food provision (breakfast, lunch, snacks), infrastructure and kitchen equipment, nutritional education, and encourages community involvement and coordination to ensure quality, safety, and alignment with educational goals.
This profile was reviewed by Mr. Agustín Claus, professor of Government, Administration, and Planning at the Faculty of Pedagogy and Education at the Metropolitan University for Education and Work (UMET).
