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)
In 2024, the official entrance age to pre-primary education was 4 years old.
In 2023, the number of years of free pre-primary education granted in legal frameworks and the number of years of compulsory pre-primary education granted in legal frameworks were 2 years. For 2023, the net enrolment rate for pre-primary for both sexes was 57,12%.
Governance
Law 34 of July 6, 1995, amends Organic Law 47 to integrate two years of free preschool education for children aged four and five into basic education.
The Ministry of Education (MEDUCA) is responsible for allocating and supervising budgets for preschool education.
In 1985, the MEDUCA established the Preschool Directorate, which was officially named the National Directorate of Early Childhood Education through Executive Decree No. 110 on July 4, 1988.
This directorate ensures the effective administration of educational processes in early childhood education centres. The office conducts cross-sectoral actions with government institutions to provide comprehensive care for our children, including the Ministry of Social Development, the Ministry of Health, the Panamanian Institute for Special Rehabilitation, the Electoral Tribunal, municipalities, and NGOs.
Tuition-free status
Pre-primary education is tuition-free, according to laws and policies.
1. Education resources to subnational governments
Panama is organised into school regions, which serve as political-administrative divisions. Each region has a Regional Directorate of Education, a decentralised unit of the Ministry with full functional and administrative autonomy, tasked with implementing both regional and national educational policies.
The Regional Directors of Education serve as the educational authority and represent the Minister of Education within their respective school regions. They are responsible for coordination functions and oversee substantive operational units to ensure effective implementation of educational initiatives. However, no formal equitable distribution mechanism has been identified for the transfers they receive.
Regional directorates primarily receive funds to implement School Food, Nutrition, and Health Programmes, construct and maintain school infrastructure, provide necessary equipment, implement educational policies, and train teachers and staff. The hiring of personnel remains a centralised function, with directorates limited to proposing staffing needs.
Under the General Law of Education, each municipality must allocate 20% of its annual income to first-level education and 5% to Physical Education at the first and second levels across all institutions. These allocations are approved through the municipal budget process.
2. Education resources to institutions
The Equity and Quality Education Fund (FECE) represents 27% of educational insurance funds, with 94% allocated to the first two educational levels (basic and middle), including the Panamanian Institute of Special Habilitation. Two per cent is dedicated to administration and supervision, and 4% to teacher training. Seventy-five per cent of FECE funding supports infrastructure rehabilitation, maintenance, and acquisition of technological equipment, while the remaining 25% is directed towards student welfare, including food, transportation, health, and extracurricular activities. The fund aims to provide essential financial resources to official educational centres in the most vulnerable areas, ensuring minimum conditions for equitable and quality education. The General Allocation Plan can be adjusted to reflect changes in school populations, educational types, and tax revenue, allowing resources to respond to evolving needs.
3. Education resources to students and families
No programme has been identified.
4. Social policies and family support programmes
The Institute for Training and Human Resource Development (IFARHU) is a decentralized agency of the Panamanian government responsible for scholarships, loans, and educational assistance. According to its regulations, it administers “all funds allocated by the government for financial assistance for educational purposes.” Scholarship programmes are funded by contributions from the national budget, international organizations, foreign governments, or private individuals.
The Assistance Programme for Vulnerable and At-Risk Populations from the IFARHU provides non-reimbursable financial support to students in primary, secondary, and higher education from vulnerable populations. Financial assistance programs are funded by the national budget. In addition, there are scholarships for students with disabilities and students living in poverty who are residents of the 300 districts with the highest levels of poverty, as established by the UNDP Living Standards Report.
The Ministry of Social Welfare (MIDES), in collaboration with MEDUCA, created the Opportunities Network(RdO), launched in 2006, which aims to expand the social protection system to historically unprotected households in extreme poverty and reduce this poverty in the short and long term. The programme provides conditional cash transfers for children's attendance at health checkups and enrollment in the education system.
