Funding
It is possible to fund quality public education for all.
The education funding crisis is a political choice, not an inevitability.
It is a question of choice.
The current inadequate funding of public education systems is due to a lack of political will to prioritise education as well as unfair distribution.
Governments can choose to adequately fund public education systems. The money exists. Extensive evidence from across the world demonstrates how progressive fiscal policy including tax and debt justice could dramatically increase access to quality education.
Public education is a shared investment in our collective future—essential for social justice, equality, democracy, and human flourishing. It works when it is properly funded, publicly governed, and rooted in the communities it serves.
Video by ActionAid highlighting how tax justice could improve access to free, quality, inclusive education, especially for girls.
The current problem
Current education financing gap: An annual financing gap ofUS$97 billion exists for low and lower-middle income countries to meet SDG4 by 2030.
Debt servicing: Over three quarters of all lower-income countries spend more on debt servicing than education.
Austerity measures: Especially in a post-COVID-19 context, global austerity measures have led to cuts in education spending at the national level, increasing precarity for teachers and students alike, while also blocking the hiring of more teachers despite shortages.
Tax justice: When governments lose an estimated US$492 billion annually to tax abuse and evasion, they miss out on crucial resources needed to invest in the right to education.
The best path to adequately funding quality education
Avoid distraction: 97% of education funding originates from domestic sources, yet funding focus remains on external aid, ignoring more viable options like sustainable public financing from progressive tax systems and debt relief.
326 million more children could go to school:
“Raising Tax-to-GDP ratios by 5 percentage points could raise over $1 trillion annually for education budgets, 5X the amount needed to achieve SDG4 until 2030. This increase could enable 326 million children to attend school.” Source.
Governments could hire more teachers: “The value lost yearly due to tax abuse by multinationals and the super-rich would be enough to hire almost 20 million new primary teachers. This value represents an increase in the current number of primary teachers worldwide by almost 60 per cent, which would enable governments to recruit all the teachers needed to combat the global teacher shortage at the primary school level.” Source.
Governments could reduce the out-of-school rate by 30%: “Ending tax abuse alone could reduce the out-of-school rate by 30 per cent at primary school level.”
When adequately funded, public education systems work: A review of public education examples in low- and middle-income countries showed that well-funded public education can be highly effective, efficient and transformative.
Case Studies
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![A hand-drawn circle formed from two curved arrows. One is labelled Underfunding. One is labelled Privatisation. In the centre of the circle there is a drawing of a book, mortarboard and an abacus with the text Public Education.]()
Vietnam: Consistent high investment in education creates an education system with impressive results in global comparisons
“Vietnam has been achieving impressive results regarding school enrolment, completed years of schooling and learning outcomes.”
The country has consistently made high investments in education, “from as high as 18.05% in 2008 to 15.24% in 2009, followed by a yearly rise, reaching 18.79% in 2012, and then dropping to 14.47% in 2018” -
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Cuba: Robust funding contributes to high quality, equitable education systems
“Cuba has a national education system that is internationally recognised for its quality and equity, with high performance in tests and universal access.
Cuba has consistently spent more than 5% of GDP in education since 1994, and more than 10% since 2007” -
![On a green background there are three digital drawings of a group of people, some coins and a book. The images are linked by three arrows to form a circle.]()
Nigeria: Addressing the tax incentive problem could transform education
In Nigeria, every year, US$8.3 billion of revenue is lost to tax incentives. If 20% of this money (US$1.6 billion) was used for education, it could fund:
- “School places for around half of all out-of-school children in Nigeria (5.2 million children), for one year
- The salary for 55,000 newly qualified teachers
- Free school meals for nearly 3 million children for one year”
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![On an orange background there are lots of hand-drawn circles, triangles and squares in different colours. The text reads pre-primary education now.]()
Senegal: The huge potential impact of tackling the tax incentive issue
In Senegal, every year, US$1.19 billion of revenue is lost to tax incentives. If 20% of this money (US$238 million) was used for education, it could fund:
- “School places for all around half (350,000) of the primary aged children currently out-of-school.
- 10,000 teachers (of the 35,000 gap required to be filled by 2030)
- Double the number of children who receive a free school meal annually.”
Voices from around the world
Video by Stanford Scope exploring how public investment has influenced education positively around the world.
Video by ActionAid showing how tax justice could transform education for learners in Pakistan.
Myths vs Realities
Across the world, policymakers, educators and learners repeatedly hear about the “scarcity of funding” affecting public education systems. Private actors use this rationale to push for greater involvement of private actors in the delivery and funding of our education systems. The scarcity framing is harmful because it depoliticises decisions (turns political choices into “facts”) and shuts down debate about alternative, viable approaches before it even begins.
Myths
“Public systems are failing”.
Public education systems are “overburdened”, “collapsing” and “in crisis”, therefore private sector capital is needed.
“We have no choice but to bring in private actors”
“There is no choice, but to involve the private sector given the current fiscal situation - it is inevitable”
Facts
Chronic underfunding has caused the public education systems’ problems.
If our education systems received the investment that they need, they could deliver quality, free, inclusive education for all.
The private sector capital will not help, because repayments will divert public money from public education, worsening the problems.
Underfunding public education is a political choice.
Governments can choose to fund public education adequately. What we spend on X (war etc.) could educate every child. The issue isn’t lack of money, it’s where it goes.
“We need innovative financing to deliver quality education for all”
“Innovative financing brings many benefits to education, beyond just the extra money.”
Well-funded public education systems are a proven path to quality education for all.
There is not yet enough evidence on the impact of innovative financing in education. However, concerns have been raised about the de-prioritisation of equity and narrow focus on specific educational results to the detriment of the wider economic, cultural and social benefits of education.
“Private sector partnerships strengthen education systems”
“The additional capital and expertise form the private sector are needed to improve access to quality education”
Public money should strengthen only our public education systems, not private companies.
With limited public budgets, public money must not be diverted to private businesses. Public resources must be protected and used in the public interest.
Partnerships are not an easy solution for governments with limited budgets because they: “often cost more while undermining fiscal sustainability…, can reduce funding available for government schools” and “still involve direct or indirect payment by taxpayers and/or students” among other reasons. Explore the evidence.
“There is no money”
“There isn’t enough public money to fund quality public education, therefore, private sector involvement is necessary.”
“There is no fiscal space in times of austerity.”
Quality, free public education can be affordable.
Governments routinely find resources for priorities they value. Tax and debt justice as well as progressive fiscal policies can help governments to fund quality public education for all.
The money is there - what we need is political will and fair distribution.
Get involved
Sign the Reclaiming Public Education For All Statement
Public education is critical in ensuring we continue to develop equitable, peaceful and sustainable futures. Yet, it faces growing threats from underfunding.
Together we can push for policymakers to challenge the political choices of governments and push for the prioritisation of the right to education. With the political will of policymakers, it is possible to deliver quality, free, inclusive public education everywhere.
Over 100 organisations and many individuals from across the world have already signed the statement calling for everyone, especially States, to robustly fund public education. Join them!
Key Resources on Funding Public Education
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Transforming Education Financing: a toolkit for activists
Author(s): Education International, Global Campaign for Education, ActionAid, TaxEd Alliance, Jo Walker
Language(s) English, Spanish, French, Arabic
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![An orange icon of a closed book with a magnifying glass on it representing research related resources.]()
Domestic Financing: Tax and Education
Author(s): NORRAG
Language(s): English, Arabic, Spanish, French, Mandarin, Russian
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Breaking out of the Bubble to Transform Education Financing
Author(s): ActionAid
Language(s): English
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![An orange icon of a closed book with a magnifying glass on it representing research related resources.]()
The public versus austerity: Why public sector wage bill constraints must end.
Author(s): ActionAid, Education International, Public Services International
Language(s): English
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![An orange icon of a closed book with a magnifying glass on it representing research related resources.]()
Impacts of Debt on the Realization of the Human Right to Education – Executive Summary
Author(s): CLADE
Language(s): Spanish
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![An orange icon of a closed book with a magnifying glass on it representing research related resources.]()
Financing Education: Why Should Tax Justice Be Part of the Solution?
Author(s): Maria Ron Balsera, David Archer and Steven J. Klees
Language(s): English
