The Financing of Georgian Education

Abstract

We analyze Georgian education finance and show that it is embedded in the overall structure of Georgian rayon finances, reflecting all their weaknesses: inequalities, lack of transparency, unmanageability, room for corruption. The budgetary and political independence of rayons is very limited. The steep fiscal inequalities between rayons are only partially and ineffectively addressed by the system of transfers. The transfers moreover are heavily negotiated and non-transparent.

Thus education finances depend on general income of the rayons, which effectively determines the level of financing. At the same time, however, the role of the rayons in the management of the sector is very limited.