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 Bulgaria, public education is overseen by the Ministry of Education and Science, with financing primarily coordinated at the central government level. The Pre-School and School Education Act regulates school funding. Public educational institutions may be state-owned and financed from the central government budget through the Ministry of Education and Science or another competent ministry or municipal and financed through municipal budgets. Private institutions are financed under the terms and conditions of the law under which they were established. The Preschool and School Education Act permits private kindergartens and schools to be financed from the state budget, subject to the terms and conditions set out in the same law. Specialised schools are financed by other ministries, such as the Ministry of Culture and the Ministry of Youth and Sports, in line with national legislation and sectoral responsibilities.
Under the Pre-School and School Education Act, the allocation of state budget funds, provided to the primary budget spending authorities (ministries and municipalities), to state and municipal kindergartens and schools is determined by formulas comprising basic and additional components. These standards are set annually by the Ministry of Education and Science in coordination with the Ministry of Finance. Allocation standards depend on factors such as the number of children and pupils, the number of groups and classes, the type and number of educational institutions, and per-child, per-class, and per-institution standards. To account for regional cost differences, allocated funds for a specific activity are multiplied by a regional coefficient determined by the municipal centre's population and its proximity to a regional city or a locality with more than 100,000 inhabitants.
State and municipal schools operate under a delegated budget system, providing the school head with operational autonomy within nationally established staffing, salary, and expenditure norms. This allows the head to act as a secondary budget spending authority, managing staff numbers, remuneration, and the dispersal of school funds. A visualisation of public funding flows is available here.
1. Education resources to subnational governments
Bulgaria’s public education system operates with administrative decentralisation, while financing is largely centralised, as basic education is implemented as a state-delegated activity and funded mainly through central government transfers. Funds are transferred from the central government to 265 municipalities, which serve as the local government administrative units. Municipalities receive resources through their own revenues, central government grants and subsidies, and other sources such as European Union funds. In practice, approximately 98% of municipal school expenditure is financed through state-delegated activities, with municipal own revenues contributing around 2%, reflecting the fact that education is the most centralised municipal function. Overall, central government transfers account for 82.6% of total municipal revenues across all sectors in 2020. Resource allocation is regulated by the 2014 Law on Public Finance and the Local Taxes and Fees Act.
The intergovernmental transfer system operates through three main mechanisms: the general subsidy, the general equalisation subsidy, and earmarked subsidies for capital investment. The general subsidy, the most significant component, finances state-delegated activities, including education. The general equalisation subsidy is an unconditional transfer designed to reduce revenue disparities between municipalities. Earmarked capital subsidies are allocated according to demographic and geographic criteria, including population size, number of settlements, and surface area.
In education, municipalities rely almost entirely on delegated-budget central government transfers. Comprehensive schools are financed through a delegated budget system that uses centrally defined, unified cost standards (UCSs). Introduced in 2007, UCSs grouped municipalities into four categories based on size, density, location, and terrain, with smaller and more remote areas receiving higher per-student allocations to offset higher costs. By 2018, the system expanded to eight categories and adopted more complex rules to better align funding with local needs. Municipal allocation formulas may increase per-student funding several-fold for small or high-cost schools by applying coefficients linked to factors such as heating type, building size, and low enrolment. Additional resources are provided to schools with high shares of vulnerable students, while protected schools in remote areas receive extra support to prevent closures.
Municipalities must transfer 100 per cent of central government funds to schools, distributing at least 85 per cent on a per-student, per-class, and per-institution basis, with the remaining 15 per cent directed to local priorities.
The Support to Municipalities for Educational Desegregation programme assists municipalities in reducing inequalities in access to quality education, particularly for marginalized Roma students. Funding is allocated through competitive grants under the National Programme “Support to municipalities for educational desegregation”, allowing municipalities to implement desegregation measures. Activities include capacity building for local administrations, school leaders, teachers, and mediators; outreach to families to encourage enrolment in integrated schools; and targeted support for vulnerable students from disadvantaged backgrounds. The programme’s objectives are to dismantle segregated schooling arrangements, prevent new forms of segregation, and promote inclusive learning environments.
2. Education resources to schools
Central government funds are transferred to municipal authorities, which allocate resources to educational institutions under the Pre-School and School Education Act. Annual allocations are based on the number of children and pupils, the number of groups and classes, the type and number of educational institutions, and standards per pupil, class, and institution. Funding is adjusted using a regional coefficient based on the municipal centre's population and its distance from a regional city or a locality with more than 100,000 inhabitants. The funding formula consists of a basic (per-student) component and additional components that compensate for small schools, remoteness, or higher operating costs. Allocated funds support the implementation of the national education programme, development of schools and support centres, equal access and individual development support, and the maintenance of education and training activities. Schools receive funding for activities promoting individual student development, including general and additional support, as well as targeted initiatives to prevent dropout and foster inclusion for students with disabilities or special educational needs. Additional targeted resources are provided through several National Programmes, including measures to support all-day school organisation, educational mediators, arts and sports activities, and programmes to improve academic outcomes.
Municipalities have discretion to allocate up to 15% of delegated education funds using their own formulas, which may include coefficients for heating type, school building characteristics, and minimal enrolment. This mechanism allows municipalities to maintain small rural schools by providing per-student allocations that are several times the unified cost standards, where necessary.
Support for Schools Serving Vulnerable Groups
Under the Pre-School and School Education Act, additional funding may be allocated to schools for specific purposes, including work with children from vulnerable groups, maintenance of classes in protected or high-demand vocational fields, and the operation of protected schools. Protected schools play a key role in ensuring access in sparsely populated and remote areas and receive additional state support to prevent closure.
Funding also supports equal access and individual development, covering transport for pupils, free textbooks and teaching materials, general and additional development activities, sports and extracurricular programmes, dropout and early school leaving prevention, and support for pupils with exceptional talents. Transport, textbooks, all-day organisation, scholarships, SEN support, and resource teams are funded through dedicated budget lines to ensure equal access and individual development support. The terms for the provision of state budget funds to ensure equal access and support individual development are established by the Council of Ministers.
3. Education resources to students and families
Support for Vulnerable Students through the State Budget
The Ministry of Education and Science provides a range of supports for vulnerable students and families, including scholarships, subsidised school transport, free textbooks, and learning materials funded through the central budget. Textbooks and learning materials are now free for all students in grades 1-12. Scholarships include merit-based, needs-based, and targeted scholarships for disadvantaged and low-income students.
Under the 2017 Ordinance on the Financing of Institutions in the System of Preschool and School Education, the state budget also supports children and students with special educational needs. Support is organised under the inclusive education framework and includes “general support” (e.g., resource teachers, psychologists, and speech therapists) and “additional support” for students with more complex needs. Financing also covers the work of personal development support centres, resource support, and adapted learning environments for SEN students. Additional targeted measures are provided through National Education Programmes, including dropout-prevention initiatives, access to the arts and sports, and support for gifted students.
The 2017 Ordinance further supports ethnic minority and refugee children by providing free Bulgarian-language education funded by the central budget. In line with the Pre-School and School Education Act, refugee and migrant students are entitled to free Bulgarian language instruction and integration support equivalent to that provided to Bulgarian citizens.
In 2018, Bulgaria introduced direct payments to schools and pre-schools with 20 percent or more children from vulnerable backgrounds, defined by parental educational status rather than ethnicity, in line with national inclusion strategies. These grants support inclusive education measures such as staff training, classroom assistants, Bulgarian language instruction, and educational mediators linking schools with communities.
4. Social policies and family support programmes
Bulgaria’s Ministry of Labour and Social Policy (MLSP) operates several social protection initiatives for families with children, including cash assistance, in-kind benefits, and targeted services that address both poverty and education-related needs. Families may receive monthly child allowances and one-off payments to cover school-related expenses for children enrolled in primary school or in VIII grade. Additional measures support children with disabilities and those at risk of exclusion, including access to psychological and language support. Assistance is provided through two complementary acts: the Family Allowances Act, which focuses on supporting families with children, and the Social Assistance Act, which establishes assistance for individuals and families who cannot meet basic needs. These social protection measures indirectly promote school participation by reducing financial barriers for low-income households.
Social Assistance Act
Under the 1998 Social Assistance Act, the Ministry of Labour and Social Policy provides financial support to persons in need, including families with children. Under the act, monthly family assistance may be provided to children in school or with disabilities, provided the child attends school (until age 18, or up to 20 if in secondary school) or has a permanent disability. There are income thresholds for eligibility, with preference given to specific groups, including children with permanent disability, children raised by relatives, children in foster care, or children with single parents.
The Social Assistance Act also provides targeted in-kind support, including emergency assistance and heating allowances, which benefit low-income households with school-age children. Local Social Assistance Directorates may also fund psychological and social work services for at-risk children, complementing education-sector support for inclusion.
Family Allowances Act (Child Allowance)
Under Bulgaria’s 2002 Family Allowances Act, the Ministry of Labour and Social Policy provides financial and material support to families to raise children and promote children’s health and education. The Act establishes both one-time and monthly allowances, granted according to criteria such as the child’s age, disability status, school attendance, and whether the child is in foster care or being raised by relatives. Eligibility requirements link financial support to compliance with key education-related responsibilities, including mandatory kindergarten attendance (ages 4–6) and regular school enrolment and attendance (ages 6–20).
The allowance amount is determined by family income and the number of children, with the monthly rate set annually by the State Budget Act of the Republic of Bulgaria. To remain eligible, families must meet specific conditions, including ensuring mandatory health screenings and immunisations, kindergarten attendance for children aged 4–6, and regular school enrolment and attendance for children aged 6–20. Benefits are suspended or withdrawn if these conditions are not fulfilled. These conditions aim to increase school attendance, reduce dropout rates, and strengthen early childhood participation.
5. School meal programmes
Bulgaria’s government does not operate a universal state-funded hot meal programme for students in primary and secondary schools. However, the state budget funds nutrition support for specific age groups: children in compulsory pre-school education and pupils in grades 1–4 receive state-funded breakfasts or snacks, and pupils participating in the full-day organisation of the school day may receive subsidised lunches. Additional funding lines for school meals and nutrition support are reflected in national expenditure categories (e.g., pre-school nutrition, all-day school meals). Students may receive dairy products, fruit, and vegetables through the Scheme for the Provision of Fruit, Vegetables, Milk, and Milk Products in Kindergartens, Schools, and Special Educational Support Centres, administered by the State Fund for Agriculture. In addition, the Bulgarian Red Cross operates a hot meal programme that provides nutritious meals to vulnerable students, funded through donations. In some municipalities, this support is co-financed by local authorities or national programmes to reach children from low-income families.
The profile was reviewed by Dr. Paskal Zhelev, Associate Professor at the University of the National and World Economy and by Krassimira Todorova of the Bulgarian Ministry of Education, Youth and Science.
