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 Montenegro, public education is primarily overseen by the Ministry of Education, Science and Innovation (MoESI). According to the General Law on Education, the national education budget is mainly determined by the central government. The Ministry approves an annual programmatic budget, with central funds covering core expenses such as teacher salaries, infrastructure investments, school maintenance, teacher training, and special education. Schools within the national education network receive funding according to detailed formulas that account for program type, student enrolment, and specific local or programmatic criteria. These standards, including class formation and advisory services, are set out in ministerial rulebooks to ensure equitable allocation of resources aligned with institutional needs.
Municipalities play a supplementary role, providing direct funding to the schools and institutions they have established. Their contributions typically cover facility maintenance, utilities, local transport, medical examinations, building investments, insurance, and local taxes and communal fees. For schools founded solely by a municipality, all operational and investment expenses are financed from local budgets.
1. Education resources to subnational governments
In Montenegro, the subnational government operates as a single-tier system comprising 24 municipalities. The 2007 Constitution defines municipalities as the basic unit of local self-government, while the 2010 Law on Local Self-Government regulates their organisation and functioning. Municipalities have limited responsibilities in the education sector, which is primarily financed by the central government, though the law allows for voluntary municipal contributions. Municipalities raise funds mainly through own-source revenues, including local taxes and fees, and may also receive subsidies and grants from the central budget.
The Equalisation Fund is the main mechanism for intergovernmental transfers, as established under the 2018 Law on Local Self-Government Finance. The Fund draws resources from multiple central government budget lines, including Personal Income Tax, real estate transfer tax, gambling revenues, and taxes on motor vehicles, boats, and planes. Its purpose is to redistribute revenue from wealthier municipalities to poorer ones through formula-based allocations managed by the Ministry of Finance. Allocations are determined by a municipality’s fiscal capacity (50%), total area and population (35%), and a fixed amount distributed equally among eligible municipalities (15%).
In addition, the 2019 Law on Local Self-Government Financing provides for the Support Fund for Pre-Financing Municipal Donor-Supported Projects (Article 20), aimed primarily at co-financing European-funded projects for municipal infrastructure development, including potential educational facilities.
2. Education resources to schools
Schools in Montenegro receive funding from the central government through programmatic budgets and formula-based mechanisms overseen by the Ministry of Education, Science and Innovation. These funding formulas consider student enrolment, the type and complexity of educational programmes, and institutional needs, including support for students with disabilities, those from disadvantaged backgrounds, and schools in remote areas. Detailed allocation standards are codified in the Rulebook on Norms and Standards for Obtaining Funds from Public Revenues by Institutions Implementing Publicly-valid Educational Programmes. Through this system, the government provides schools with core funding for salaries, operational expenses, infrastructure investments, and specialised educational support.
Programme Budget System
The Programme Budget system, established in the 2005 fiscal year, channels public resources toward disadvantaged schools. Public expenditure is organised into programmes, sub-programmes, and activities aligned with government objectives. This structure allows for earmarked funding to address the needs of low-income, rural, and minority communities, supporting initiatives such as school renovation, teacher professional development, and targeted interventions to reduce educational disparities.
Resource Centres for Special Educational Needs
Since 2012/13, Montenegro’s central budget has funded three Resource Centers to support children with special educational needs (SEN). These centers provide education and resources for children with hearing and speech difficulties, intellectual disabilities and autism, and physical or visual impairments. They also serve as hubs for inclusive education, offering professional development and support for general education teachers. Funding is allocated based on the specific educational programme, pupil numbers, and other relevant criteria, and includes costs for accommodation and meals for students residing in the centres’ dormitories.
3. Education resources to students and families
The Ministry of Education, Science and Innovation funds a range of measures to address disparities faced by vulnerable students and their families at primary and secondary levels. Under the General Law on Education, direct financial support is available to students with special needs or from specific national or ethnic groups. The 2025–2035 Education Reform Strategy outlines additional incentives, including scholarships for students from vulnerable groups—particularly Roma and Egyptian communities—to reduce disparities in access, coverage, and educational outcomes.
Subsidised Textbooks for Vulnerable Students
In line with Article 136.13 of the General Law on Education, the government provides funds for textbooks for students from national or ethnic minority groups, including Roma and Egyptian communities. Since the 2021/22 school year, all primary school students in these groups have received textbooks free of charge.
Subsidies for Students at Special Needs Institutes
Article 136.12 of the General Law on Education provides for funding to cover the costs of accommodation and meals for pupils residing in dormitories or institutes for children with special needs, ensuring access to education and support services for students requiring specialised care.
4. Social policies and family support programmes
Child Allowance
The Child Allowance, established by the Law on Social and Child Protection, is a nationally administered cash benefit designed to reduce child poverty and support families with children. It was originally introduced in 2006 to support children in low-income households with disabilities. Reforms adopted in May 2021 expanded the allowance to a quasi-universal benefit for all children under the age of six. In December 2021, an amendment was adopted to extend coverage to all children up to the age of 18 from the end of 2022. In 2021, the transfer amounts to EUR 30 per month per child.
5. School meal programmes
There is no nationwide school meal programme covering students in primary and secondary education in Montenegro, though GCNF reports that a pilot programme to provide fruit, vegetables, and milk is in operation. Under social assistance schemes, the central budget provides funding to cover the cost of meals for children at the pre-primary level whose parents are social welfare beneficiaries.
