Georgian government approves new funding model for state universities

By decree of the Government of Georgia, a new funding model for state universities has been approved and will be phased in starting from the 2026–2027 academic year, according to an announcement by the Ministry of Education.

According to the Ministry of Education, the model, developed in collaboration with the World Bank, comprises two main components: base funding and performance-based funding.

“Base funding entails determining financial allocations based on the varying costs of academic programmes, categorised by fields of study and higher education levels, namely undergraduate and postgraduate degrees. Furthermore, student enrolment figures will be factored into university funding to cover core operational costs related to the educational process and student services.

The base funding component will be gradually supplemented by performance-based funding, which will focus on outcomes aligned with state priorities. This includes the following areas: educational quality and alignment with labour market demands; enhancing the quality of research, development, and innovation; promoting internationalisation; supporting regional development; and increasing access to higher education.

In collaboration with state universities, the Ministry will establish individual contractual funding agreements that take into account each institution’s mission, objectives, profile, and resources.

The performance-based funding component will enable each state university to contribute towards national objectives while remaining continuously focused on advancing the quality of education.

This new model will assist state universities in developing relevant educational programmes, ensuring high-quality instruction, and providing dignified working conditions alongside competitive remuneration for academic, administrative, and support staff.

The primary objective of the higher education reform is to enhance the quality and accessibility of higher education. The implementation of this new model directly serves that end; state funding will be directed towards raising educational standards, broadening access, strengthening university research capacity, and fostering the long-term institutional development of higher education establishments.

An additional 42 million GEL will be allocated from the state budget for the first phase of the new funding model, bringing total higher education funding to 170 million GEL in 2027.

The Ministry of Education, Science, and Youth of Georgia has been collaborating with the World Bank on this new funding model for several years. The model was developed following a deep-dive analysis of systemic needs, a review of international best practices, and active engagement with foreign and local experts under the project Georgia I2Q – Innovation, Inclusion and Quality (WB),” the official release stated.