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 Moldova, basic education is financed through a semi-centralised system. The Ministry of Education and Research prepares the education budget and negotiates the expenditure ceilings, while the Ministry of Finance channels earmarked transfers from the state budget to local governments. Local public authorities, allocate funds to schools under a government-approved formula based on the number of pupils and the institutional needs.
The 2014 Education Code defines four main funding channels - standard, compensatory, complementary and project-based financing - which together aim to ensure both predictable core funding and additional resources for inclusion, infrastructure and innovation, especially in disadvantaged areas. The 2014 Education Code structures funding into four distinct channels, each targeting different policy priorities. Standard funding - based on per-student cost with adjustment coefficients - anchors predictability and fairness. Compensatory funding addresses inclusion, channelling resources toward children with special needs or exceptional abilities. Complementary funding supports systemic quality through infrastructure, transport, food, and accommodation subsidies. Finally, project-based tender funding injects competitive and innovative financing into the system.
1. Education resources to subnational governments
Resources to subnational governments are based on a per-student funding formula approved by Government Decision No. 868/2014 on standard-cost per pupil financing. The overall transfer to each administrative unit is determined by C = A × N + B × S, where A (per-student value norm) reflects the cost of educating a “weighted student” and B (institution value norm) accounts for fixed school expenses, while N and S capture student numbers and number of schools /institutions, respectively. These norms are derived from the national expenditure ceiling, balancing funds between student-based costs and institutional maintenance. The weighting system and value norms are set annually in line with the national expenditure ceiling and include adjustments for education level, school location and language of instruction, which helps address higher costs in rural and small schools. The system also provides for centralised reserves of up to 3% and an Inclusive Education Fund of up to 2% to support equity. Savings generated through school network optimisation or demographic decline remain with local governments and can be reinvested in the education sector, reinforcing the equity orientation of the transfer system.
2. Education resources to schools
At school level, local governments distribute the transfers received from the state budget using the same standard-cost per pupil norms, while ensuring minimum allocations for small schools. These school allocations are based on V = (A × N + B) × K + R + I, which adjusts the core transfer by a territorial coefficient, targeted local funds, and contributions from the Inclusive Education Fund. Special provisions protect smaller schools, ensuring that primary schools with 41 students or fewer and gymnasiums with 91 students or fewer receive a guaranteed minimum allocation regardless of enrolment. Final allocations are approved by local councils to ensure transparency and accountability.
The Ministry of Education and Research, with support from UNDP, the World Bank, UNICEF, and EU funding, is implementing a Model School programme to optimise the school network by transforming larger district schools into modern, inclusive institutions. Upgrades include infrastructure improvements, new equipment, qualified teachers, and transportation services. By prioritizing schools in disadvantaged districts and rural areas, the programme channels additional resources to institutions that serve vulnerable students and face higher per-student costs.
Initially, 35 schools will be targeted.
Under the World Bank’s EQIP project, 15 schools will be renovated, two new secondary schools built, and 46 schools supported with energy efficiency measures. UNDP and UNICEF will refurbish 10 schools focusing on STEAM, inclusiveness, and technology, and provide minibuses for rural students. Additionally, UNDP plans to transform 15 more schools - five with NORAD support - through inclusive, green renovations and new furniture, while strengthening curricula, teacher training, and local school management.
3. Education resources to students and families
Educational Support Services
The 2014 Education Code guarantees a range of education support services free of charge. Children in preparatory groups receive didactic materials, and all pupils in primary and lower secondary education are provided with textbooks funded from the state budget. Learners with special educational needs benefit from assistive learning materials and support services, financed partly through the Inclusive Education Fund, which covers resource teachers and specialized equipment in mainstream schools To reduce territorial barriers, the state finances transport for pupils and teachers when the distance between home and school exceeds two kilometres, a measure that mainly benefits rural communities and helps maintain access to education in sparsely populated areas.
4. Social policies and family support programmes
In 2025 the Government introduced a one-off “school support” payment of 1,000 lei for every pupil enrolled in grades I–IX to help families cover the costs of school preparation.
Since 2024, families who transfer their children from very small schools (with fewer than 50 pupils) to larger institutions benefit from a monthly allowance of 1,000 lei per child for up to two years, under Government Decision No. 506/2024 on the allocation to increase access to quality education. The allowance is paid from the state budget and is intended to compensate additional transport and living costs, thereby encouraging rural families to enrol their children in better-resourced schools.
Social allowances are provided to orphans and children who have lost a breadwinner. School attendance is mandatory, and orphans remain eligible for support up to the age of 23 while studying. The monthly benefit equals 40% of the annually adjusted minimum state retirement pension per child. In 2025, with the minimum pension set at 3,300 lei, the monthly allowance amounts to approximately 1,320 lei for each eligible child.
5. School meal programmes
Moldova operates a nationwide government-funded school meal programme for pupils in primary and lower secondary education.
Its first school food programme began in 2001 through a USDA–IPHD partnership under the McGovern-Dole Food for Education initiative, restoring a system that had collapsed after 1992. The programme mobilised over $29 million in local contributions and encouraged the government to commit $21 million annually. By 2007, IPHD had fully transferred responsibility to government and community support, marking the first nationwide USDA NGO school food programme successfully handed over.
In 2018, the government approved new standards for child nutrition in educational institutions, formalising the commitment to expand and regulate the programme. Financial norms and menus are regulated through joint orders of the Ministry of Education and Research, the Ministry of Finance and the Ministry of Health, which set age-appropriate nutritional standards and ensure that meals contribute to both learning outcomes and students’ health.
Government Decision No. 80/2025 extended free school meals to all pupils in grades V–IX in public general education institutions, in addition to the existing entitlement for grades I–IV.
This profile has been reviewed by Prof. Rina Turcan.
