By a resolution of the Government of Georgia, a new model for financing state universities has been approved, which will be gradually put into effect from the 2026–2027 academic year. This information is disseminated by the Ministry of Education, Science and Youth.

According to them, the model, which was developed in cooperation with the World Bank, includes two main components - basic and performance-based financing.

“Basic financing means determining funding in accordance with the different costs of academic programs, according to fields of study and levels of higher education - bachelor’s and master’s degrees. In addition, the number of students will also be taken into account when financing universities, which will ensure the coverage of basic costs related to the educational process and student services.

The performance-based financing component will gradually be added to the basic financing, which will be oriented toward the results of fulfilling the state order. This includes the following directions:

Quality of education and compliance with market demands;

Improvement of the quality of research, development and innovation;

Promotion of internationalization;

Promotion of regional development;

Increase of access to higher education.

In cooperation with state universities, the Ministry will individually determine the terms of contractual financing taking into account the mission, goals, profile and resources of each university.

The performance-based financing component will give each state university the opportunity to make its own contribution to achieving national goals and to constantly be oriented toward the development of the quality of education.

The new model will help state universities develop relevant educational programs, ensure a high quality of teaching, and provide decent working conditions and competitive remuneration for academic, administrative and support staff.

The main goal of the higher education reform is to increase the quality and accessibility of higher education. The introduction of the new model serves precisely this goal - state financing will be directed toward increasing the quality and accessibility of higher education, strengthening the research potential of universities, and promoting the long-term institutional development of higher educational institutions.

For the first stage of introducing the new financing model, an additional 42 million lari will be allocated from the state budget, and in 2027 the total volume of higher education financing will reach 170 million lari.

The Ministry of Education, Science and Youth of Georgia has been working on the new financing model together with the World Bank for several years. The new model was developed within the framework of the project - ‘Innovation, Inclusion and Quality - Georgia I2Q (WB)’ - based on an in-depth analysis of the needs existing in the system, the study of best international practices, and with the involvement of international and local experts,” the information states.