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 Armenia, the Ministry of Education, Science, Culture, and Sports (MoESCS) is the central authority responsible for overall education policy and financing. Responsibilities for the governance of the education sector are fragmented, with functions are carried out by subordinate or affiliated agencies. These include the National Centre for Education Development and Innovation, responsible for in-service teacher training and school curriculum development; the Examination and Testing Centre, overseeing national admission examinations and the National Centre of Education Technologies (NCET), which develops digital learning systems and manages the education management information system (EMIS). While these agencies operate as separate state-founded entities with their own management and legal status, they remain accountable to MoESCS.
Education funding in Armenia primarily originates from the central government budget. The Ministry of Finance allocates an annual budget to MoESCS, which distributes funds among its distinct activity areas: Education and Science; Culture; and Sports and Youth. Funding for the General Education Programme is allocated under the Education and Science activity area.
In Armenia, funding for general education is largely decentralized: the MoESCS allocates significant resources to the Yerevan Municipality and marzes, (regional administrations), which distribute funds to the individual educational institutions, based on the funding formula, as outlined below. While most schools fall under the jurisdiction of the marzes, high schools (grades 10-12) are exclusively governed and funded directly by the MoESCS. The MoESCS has proposed reforms to unify all general education institutions under its authority. The goal is to ensure consistent application of educational standards, curricula, and teacher certification across the country.
Until 2020, all public general education institutions were financed by a formula based on student enrolment. The total amount allocated per year to an institution was equal to the number of students multiplied by a predetermined amount, plus a minimum amount for the institution's maintenance. Citing a need to better account for variable expenses in schools with fewer resources, the Ministry announced changes to the funding formula in 2019, which came into effect in 2022. The new formula considers the average annual number of classes in elementary, middle and high schools, and adds the minimum wage per teacher multiplied by the number of teachers per class. The funding formula was further refined in 2025, with granular regulations that account for access and equity, especially for disadvantaged groups.
Plans for the continued development of equitable funding mechanisms are outlined in the 2022 State Programme for the Development of Education in the Republic of Armenia Until 2030 and its 2023 Action Plan. The Rationale for Actions Ensuring Implementation of the 2021-2026 Action Plan of the Government of the Republic of Armenia also cites the development of an additional performance-based funding mechanism based on effective management, “to encourage good performance and outcomes”.
1. Education resources to subnational governments
As outlined above, the Ministry of Education, Science, Culture, and Sport (MoESCS) allocates a portion of the national budget to marzes, the regional administrative bodies and Yerevan Municipality. The marzes are responsible for distributing funds to individual educational institutions, except for high schools, which are funded directly by MoESCS.
Until 2025, funds were distributed according to a revised funding formula, announced in 2019 and made part of the 2022 State Programme for the Development of Education in the Republic of Armenia Until 2030. The formula was developed to account for discrepancies in school quality, particularly to address the under-funding of rural and remote schools. The formula considers the average number of classes in elementary, middle and high schools. It also counts for “teaching process features” such as the presence of multiple grade levels in a class.
Per a 2025 government decree, “Regulation of Financing General Education Institutions from the State Budget, Defining the Principles and Methodology of Financing Programs Envisaged by the State Budget, and Approving the Coefficients and Normatives for Financing General Education Institutions of the Republic of Armenia from the State Budget”, a new budget allocation formula has been adopted. The revised formula represents a significant shift towards targeted, need-based budgeting, ensuring that specific school needs are accounted for through clearly defined coefficients and normative allocations. The new formula also accounts for the classes per school, as opposed to the student numbers, which putting small rural schools at a disadvantage. The budget is allocated through a financing mechanism aimed at achieving equity through targeted allocations occurring via systematic transfers from central to the marzes.
2. Education resources to schools
The 2022 State Programme for the Development of Education in the Republic of Armenia Until 2030 (Strategy 2030) states that the Armenian government is focusing efforts to improve access to education in four targeted marzes: Ararat, Kotayk, Gegharkunik, and Syunik. This initiative supports the implementation of national school optimisation plans, which aim to strengthen the efficiency and quality of the education system in these regions. Syunik is a particular priority due to its underdevelopment, the impact of recent hostilities, and a significant population of displaced students and teachers. Syunik also has a high proportion of small schools with fewer than 100 students, making network optimisation essential for ensuring sustainable and equitable educational services.
In line with the set priorities in the Strategy 2030, the MoESCShas approved amendments in 2025 to the financing rules for state general education institutions, introducing principles, coefficients, and normative allocations to ensure equity. With the new regulations, schools will have greater flexibility to direct part of their savings toward addressing urgent needs. The new funding rule also ensures SEND-related adaptations and individualized adjustments for each student with special needs.
3. Education resources to students and families
Textbooks Fees for Children from Border Communities Receiving Social Assistance
In accordance with the 2009 Law on Education, the state budget provides students in Grades 1-4 of general education schools with free textbooks. However, students in Grades 5-12 must pay textbook fees. To support the inclusion of vulnerable students, children from border communities who receive social assistance have been exempt from paying textbook fees since 2015 as part of an initiative to support border communities. This programme aims to reduce financial barriers to education for families living in economically and geographically disadvantaged areas. By waiving these fees, the government seeks to support greater educational access and equity, particularly for children whose households are enrolled in social protection programmes.
4. Social policies and family support programmes
Family Benefit Programme
The Family Benefit Programme, established in 1999 and managed by the Ministry of Labour and Social Affairs, is a central component of Armenia’s social protection system, designed to support low-income and vulnerable families through targeted cash assistance. Eligibility for the family benefit is determined by an assessment of household income and assets, ensuring that assistance is directed to those most in need. Families receive a base benefit and additional supplements based on circumstances. Families with children under two years old receive an additional childcare supplement, and there are further supplements for particularly vulnerable families or those meeting specific criteria, such as forcibly displaced families from Nagorno-Karabakh, who may receive extra monthly payments and utility support. The exact amount each household receives is determined by a scoring system that assesses income, assets, and vulnerability factors.
The programme received an allocation of AMD 59 million in 2025 and reached over 51,000 families. The base transfer amount is AMD 36,000 per month per family, with supplements provided for families with additional vulnerabilities.
5. School meal programmes
Sustainable School Feeding Programme
Armenia launched a school meal programme in 2010 in partnership with the World Food Programme to improve student health, nutrition, and attendance, particularly in rural and low-income areas. Since its launch in 2010, the programme has evolved from a fully donor-funded initiative into a nationally owned model. The Ministry of Education, Science, Culture and Sports took full administrative responsibility for the programme in 2023. The school meal programme targets primary school children (Grades 1 to 4) in rural communities, providing them with daily hot lunches during the school day. Its objectives include reducing short-term hunger, supporting child development, encouraging school attendance, and contributing to better learning outcomes. The programme is also integrated with nutrition education and hygiene practices, contributing to broader health and social development goals. In 2025, the programme extended coverage beyond 10 rural regions and included Yerevan, ensuring that universal access by 2030 is set as a government priority.
This profile was reviewed by Arevik Ohanyan, Doctoral Candidate in Higher Education Administration (Executive EdD), Boston College; Founding Board Member, Eurasia International University and Ohanyan Educational Complex (pre-K through K12); Education Reform Consultant.
