Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entrance age to pre-primary education is three. Four years of free pre-primary education are granted in legal frameworks. Three years of compulsory pre-primary education are granted in legal frameworks. The net enrolment rate for pre-primary for both sexes was 87.34 in 2024.
Governance
The Ministry of Education and Science of Bulgaria holds primary responsibility for financing pre-primary education. It receives state budget funds from the Ministry of Finance of Bulgaria and allocates them to municipal and state kindergartens. Municipalities are responsible for administering municipal kindergartens and managing the allocated budgets in accordance with national funding standards established under the Pre-School and School Education Act.
Tuition-free status
Since 2023, all public early childhood education and care, including kindergartens and pre-primary groups, has been free for families
1. Education resources to subnational governments
Bulgaria’s public education system operates with administrative decentralisation and largely centralised financing, as pre-primary education is implemented as a state-delegated activity funded mainly through central government transfers to municipalities. Funds are transferred from the central government to 265 municipalities, which serve as the local administrative units responsible for managing public kindergartens. Municipalities receive resources primarily through state transfers for delegated activities, complemented by their own revenues and, in some cases, European Union funds. Resource allocation is regulated by the 2014 Law on Public Finance and the Local Taxes and Fees Act.
The intergovernmental transfer system general subsidies for delegated activities, general equalisation subsidies, and earmarked capital subsidies. The general subsidy, the most significant component, finances state-delegated services, including pre-primary education. The general equalisation subsidy aims to reduce fiscal disparities between municipalities, while earmarked capital subsidies support infrastructure investment.
Education institutions, including kindergartens and schools, are financed through a delegated-budget system based on unified cost standards (UCSs) determined at the national level. The funding formula incorporates equity considerations, using adjustment coefficients linked to factors such as municipality size, population density and geographic remoteness. Additional resources may be allocated to institutions serving higher shares of vulnerable children, while protected schools in sparsely populated areas receive extra support to maintain access to education.
Municipal allocation formulas may increase per-child funding several-fold for small or high-cost institutions by applying coefficients linked to factors such as heating type, building size, and low enrolment. Additional resources are provided to institutions with high shares of vulnerable children, while protected institutions in remote areas receive extra support to prevent closures.
2. Education resources to institutions
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, 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.
Under the Pre-School and School Education Act, additional funding may be allocated to institutions 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 institutions. Protected institutions play a key role in ensuring access in sparsely populated and remote areas and receive additional state support to prevent closure. Municipalities may adjust the distribution of state-transferred education funds using locally defined formulas, thereby providing additional support for small institutions, rural areas, or institutions serving disadvantaged populations. This mechanism allows municipalities to maintain small rural institutions by providing per-child allocations that are several times the unified cost standards, where necessary.
3. Education resources to students and families
Since 2023, all public early childhood education and care, including kindergartens and preprimary groups, is free for families, with the state budget compensating municipalities for both fees and meal costs. Under 2020 amendments to the Preschool and School Education Act, parents of children aged 3 up to entry into grade 1 who have applied for, but were not admitted to, a municipal or state kindergarten or school are entitled to monthly compensation. Central budget resources are allocated by government decision and transferred to municipal budgets, which are responsible for paying compensations to eligible families. The support is intended to offset the costs of alternative early childhood education and care, with payment conditional on proof of such expenditure and confirmation that the municipality cannot provide an equivalent public place. The measure seeks to reduce territorial inequities in access and to lessen the financial burden on families when the state is temporarily unable to provide a pre-primary place.
The financing framework also includes targeted support measures aimed at improving access and inclusion, such as funding for transportation for children living in settlements without nearby kindergarten provision, additional resources for inclusive education and support services for children with special educational needs, and programs addressing the participation of children from disadvantaged backgrounds.
4. Social policies and family support programmes
Several social protection initiatives outside the education sector support access to pre-primary education in Bulgaria, mainly through family benefits administered by the Ministry of Labour and Social Policy of Bulgaria and the Social Assistance Agency, under the Family Allowances for Children Act, and the Social Assistance Act, which establishes assistance for individuals and families who cannot meet basic needs.
The main mechanism is the monthly family allowance for children, a cash benefit for families with children under 18. Eligibility is partly income-tested and targeted at lower-income households; for example, in 2024–2026 the income threshold for full benefits is around BGN 710 per family member per month, with reduced benefits available above that level. The allowance is paid monthly and increases with the number of children and is intended to help cover costs related to raising and educating children.
Additional social support measures include child tax relief under the Personal Income Tax Act, which allows parents to reduce their annual taxable income depending on the number of dependent children. This measure provides indirect financial support to households raising children, including those attending pre-primary education.
This profile was reviewed by Assoc. Prof. Dr. Paskal Zhelev, University of National and World Economy.
