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 Croatia, the financing of education is primarily managed by the Ministry of Science, Education and Youth and the Ministry of Finance, with shared responsibilities between central and subnational governments. Central government institutions, including the Ministry of Education, are responsible for overseeing the allocation and dedicated use of funds provided through the state budget to education institutions. Local and regional self-government units (LGUs), which include counties and municipalities, co-finance education, and oversee funds allocated from their budgets. The Ministry of Finance plays a supervisory role, ensuring legal compliance in the use of budgetary resources, and the State Audit Office audits financial statements and transactions at both state and local levels.
Responsibilities for basic education in Croatia—encompassing pre-primary, primary, and secondary levels—are shared between central and local authorities. The state and LGUs jointly fund primary and secondary education, while the founders of institutions (which could be public or private entities) are responsible for direct management and operational funding. Founders also monitor the expenditure of funds coming from their respective budgets. Education funding mechanisms involve both direct transfers and performance-based components.
1. Education resources to subnational governments
For subnational governments, education financing is governed by the Financing of Local and Regional Self-Government Units Act, first introduced in 1993 as preconditions and then the passing of the law in 2001. Local and regional governments manage their budgets independently and carry out education funding in accordance with national legislation. Funds are obtained from the local or regional government’s income tax at a rate of 1.9 % for primary education and 1.3 % for secondary education. If the amount received from this method does not equal to the minimum standard, the State Budget of the Republic of Croatia will cover the difference with equalization aid. The criteria and benchmarks for determining the balance rights for financing the minimum financial standard public needs of primary and secondary education are set by the Ministry of Finance.
The payment of decentralised functions aid funds for primary and secondary schools (counties and cities from the state budget) is carried out according to the following formula:
Source: Eurydice
P(n,x) = assistance in month n for financing holder x
MFS(n,x) = minimum financial standard in month n, for financing holder x
T(n,x) = income from the conditional rate in period n, for the holder of financing x
IP(n,x) = aid paid in period n, for funding holder x
2. Education resources to schools
Resources for schools come from central government funding, local government (LGU) contributions, and founder resources such as fees, donations, and income from commercial activities. Public schools are mainly financed by the state budget and local governments, with oversight to ensure proper use of funds. Allocations to schools are typically based on operational needs, staffing, and maintenance requirements.
The Whole-Day School (WDS) Initiative
The Whole-Day School (WDS) Initiative, launched in 2023 as a four-year project targeting 62 primary schools, aims to create a more balanced, inclusive, and efficient education system by extending school hours and enhancing educational support. Planned for full national rollout by 2027/2028, it focuses on reducing disparities linked to socioeconomic, regional, and personal factors by increasing instruction time and providing structured after-school activities. Supported by EU funding for infrastructure and curriculum development, alongside state budget contributions for teacher salary increases, the programme especially targets disadvantaged students and schools facing challenges like double shifts. Its main goals are to improve academic outcomes, reduce inequality, support teachers, and enhance the well-being of students, families, and communities.
The 2021-2027 National Education System Development Plan includes goals for providing additional support for students and schools with a large number of Roma students. Additionally, the Ministry of Science and Education provides EUR 1.33 per student per month to help cover the increased costs of special teaching aids for students with disabilities.
Croatia's Roma National Minority Program, launched in 2003 under the National Programme for Roma, provides direct grants to schools for equity measures targeting ~5,000 Roma pupils annually, including teaching assistants, language classes, and after-school support. The program remains ongoing through the 2021–2027 National Plan for Roma Inclusion, with ~€2.3 million yearly from the Ministry of Science and Education to address segregation and dropout risks.
3. Education resources to students and families
The Ministry of Science and Education provides financial aid for Roma students. Roma students who complete secondary education may receive of a one-time financial aid benefit. Students who complete a two-three year programme receive EUR 200 while those who complete a four or five year programme receive EUR 400 The Ministry also provides a monthly scholarship for high-school students of EUR 132.72.
The Ministry also provides financial support to students with special education needs to help them to cover transportation costs and special teaching aids. Parents may be reimbursed for up to EUR 0.33 per kilometre traveled.
4. Social policies and family support programmes
The current, modern Child Allowance system started in 1999. It is a social welfare programme run by the Croatian Pension Insurance Institute (HZMO) that supports low-income families to maintain children’s access to education. Benefits are conditional on school attendance and aligned with key stages of compulsory and secondary education. The allowance is paid until the child turns 15 or finishes that school year, with extensions for late school starts or health-related delays. It continues through secondary education, usually until age 19, and up to 20 or 21 for extended or special education students. Targeted by income, the programme prioritises families most at risk of struggling with educational costs.
The social welfare system also includes a Personal Needs Allowance which can be provided to primary and secondary students to help them fund personal needs. The allowance amounts to EUR 37.50 for a primary school student and EUR 56.25 for a secondary student per month. The government covers the cost of a student dormitory for secondary students who live with a foster family, or those with lower income status. Additionally, funds may be provided to cover transportation costs for the same students as well as students with disabilities.
5. School meal programmes
Croatia operates a comprehensive, universal school meal programme in primary schools, providing both breakfast and lunch to all students, funded mainly by the Ministry of Science and Education through the national budget. International donors, including the EU’s fruit, vegetable, and milk scheme, have supported the programme, especially under the 2017–2023 National Strategy for the Implementation of the School Scheme. While primary schools offer universal meals, secondary school provision is more limited, often targeting vocational students or relying on project-based funding. The programme follows national nutritional guidelines developed with nutritionist input, requiring specialized training for cooks in nutrition, hygiene, and menu planning. Meals are balanced to meet children’s dietary needs and combat obesity, excluding highly processed foods and items high in sugar or trans fats, and often include fortified foods with essential vitamins and minerals like iron, iodine, and vitamin D.
This profile was reviewed by Prof. Dr. Hatidža Jahić, Associate Professor of Development and International Economics at the University of Sarajevo.
