The Report warns that mobilizing sufficient financing remains a major challenge in implementing the 2030 Agenda for Sustainable Development.
The report states that significant additional financing is required for SDG4. It explains that annual total spending to achieve the first two —and costliest—education targets, namely universal pre-primary, primary and secondary education, would need to more than triple in low-income countries.
Three sources of funding are available to fill the gap: Governments, donors and households.
Domestic public finance is by far the most important source of funding, accounting for 79 per cent of education spending globally. Poorer countries prioritize education more in their public expenditure, but this still translates into vastly smaller expenditure by student— less than $200 annually per primary school student in low-income countries, compared to around $8,000 in high-income countries. In response, households have to contribute a much larger share of education financing directly. In some developing countries, households account for more than half of all expenditure, compared to less than 15 per cent in most developed countries. Overreliance on households raises equity concerns.