Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

In 2023, for tertiary education, the gross enrolment ratio for tertiary education for both sexes was 30.96%. The initial government funding per tertiary student as a percentage of GDP per capita and initial household funding per tertiary student as a percentage of GDP per capita is not available.

Tuition-free status

Ministerial Diploma No. 34/2021 states that students enrolled or active in degree programmes at accredited public or private higher education institutions during the 2021 academic year are exempt from paying tuition fees, retroactively from the first semester of 2021, up to a maximum of US$150.00 per student. The State will compensate public and private institutions for the total amount of tuition fees reimbursed to students. These tuition fee exemptions do not apply to students receiving public or private scholarships that cover their full tuition fees.

Governance

The National Directorate of Finance and Administration (DNFA) is the DGAF department responsible for budget planning, financial execution, and administrative management for financing higher education and the Ministry of Higher Education, Science, and Culture.

1. Education resources to subnational governments

No funding mechanisms for transferring resources from the central government to local governments for public higher education have been identified.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

The MESCC can allocate funds to private higher education institutions to enhance quality, including infrastructure, operational materials, resource training, and other activities outlined in the proposals submitted to the Ministry.

Allocation and equity

Government subsidies to public higher education institutions in Timor-Leste are allocated as budgetary appropriations via the General State Budget (Art 5, Decree-Law No. 14/2025), without an explicit equity formula mechanism within the institution's own budget.

Decree-Law No. 12/2021 introduced the 'Ensinu Superior Kualidade+' (Higher Education Quality+) credit line, offering financial guarantees on loans and subsidised interest rates. This initiative aims to support higher education institutions by funding projects that improve private higher education infrastructure, enhance teaching and research quality, acquire teaching materials, increase human capital training, and address non-tax-related debts to the State.

3. Education resources to students

Admission for vulnerable groups

According to Law No. 6/2024, Article 12, access and admission to higher education must adhere to the principles of democracy, fairness, and equal opportunity. Additionally, the State must create conditions that ensure citizens can attend higher education, preventing discriminatory effects from economic and regional inequalities or prior social disadvantages.

Ministerial Diploma No. 58/2021 defines in its Article 15 a special access regime for students who fall under one of the following sub-regimes: Hakbi’it for members of kbi’it laek families (Art.19, people who come from families that are economically and socially disadvantaged), people with proven physical or sensory disabilities, and residents of the Municipality of Manufahi, among others.

Scholarships, grants and loans for vulnerable groups

The Human Capital Development Fund (FDCH), approved by the National Parliament through Law No. 1 / II, is a fund aimed at developing human resources in priority strategic areas and funding scholarship programmes for vulnerable groups, as well as for special health initiatives, among others.

Ministerial Diploma No. 9/2021 regulates the awarding of scholarships for higher education to national citizens, particularly young students from vulnerable families (Kbi'it laek), to cover accommodation and living expenses. Scholarships are awarded by the FDCH Technical Secretariat in collaboration with the Ministry of Higher Education, Science and Culture.

No loans for specific groups in higher education have been identified.