Total expenses for education in 2020-2023 vary between 5.5 and 6.3 percent of the GDP. (Source: National Bureau of Statistics of the Republic of Moldova. Education in the Republic of Moldova. Edition 2024 Available at: https://statistica.gov.md/files/files/publicatii_electronice/Educatia/Educatia_editia_2024.pdf (Accessed on 17 July 2024)).  The share of public expenses represents about 90 percent of the total expenses for education. The largest share in the structure of public expenditure on education in 2020 was held by secondary education - 49%, followed by early education and primary education - 30%, vocational education - 9%, and higher education - 8%. (Source: Education Development Strategy 2030, approved by GD 114/2023, annex 1. Available at: https://www.legis.md/cautare/getResults?doc_id=136600&lang=ro  (Accessed on 17 July 2024)). 

The public financial means allocated for financing the education system and public educational institutions, are approved every year by the Parliament through the State Budget Law. The government approves the plan (the state order) for places funded from the state budget in vocational and higher education institutions. The Ministry of Education and Research prepares proposals for the draft state budget and ensures the distribution of expenses in the field of education at the national level, including special destination transfers from the state budget to local budgets. Public institutions of early childhood education, primary, and secondary education are founded by the local public administration authorities and by those of Gagauzia Autonomous Territorial Unit (UTA Gagauzia). They are funded by special destination transfers from the state budget to local budgets. 

Compulsory education is free and begins with the preparatory group of preschool education (level 020 ISCED) and ends with gymnasium (secondary education, level 2 ISCED). The obligation to attend compulsory education starts at the age of 5 and ends at the age of 16. The state ensures the expenses for compulsory education.

In the preschool education institution, all children from the corresponding school district are compulsorily enrolled, upon request, without competitive exams. The state ensures the expenses for preschool education and care services in public institutions for all children, including children with special educational needs. At the parents' request, local public administration authorities can organize early childhood education, with funding from local budgets.

The basic financing of general education is done according to the principle "the money follows the pupil". This means that funds designated for each pupil or child are allocated to the educational institution they attend. Public institutions of primary and secondary education (cycle I and II) are financed on the basis of standard cost per pupil. In the first grade, as well as in the gymnasium, all children from the corresponding school district are compulsorily enrolled, without competitive exams. Secondary education, based on ministerial regulations, can be organised remotely or at home for children with learning difficulties due to disabilities.

Vocational education and higher education are financed from the state budget within the limits of the admission plan (state order) approved annually by the Government.

According to the Education Code, the funding of education from state budgetary resources, is done in four ways:

• Standard funding: standard cost per child/pupil/student and adjustment coefficient;

• Compensatory funding: for children with special educational requirements, children with special abilities - through experimental or alternative programmes and performance support programmes;

• Complementary funding: for the modernisation of the material and didactic base, for subsidising food, for school transport and accommodation;

• Project-based tender funding.

The state provides, free of charge:

• didactic materials for children from preparatory groups, 

• school textbooks for pupils from primary and secondary education, 

• alternative communication, writing, reading, and orientation systems for children, pupils, and students with special educational needs. These alternative systems are provided for pupils/students who study in general, vocational, and higher education institutions, based on their individual needs. 

For activities and study programmes, additional to the standard package of educational services financed from the state budget, fees may be charged in accordance with the legislation in force.

Institutions of vocational education and training (VET), higher education and continuous training can obtain and use, under the law, their own income, derived from the fees paid by natural and legal persons interested, including from abroad, for studies, improvement and professional retraining based on contract.

Institutions of VET, higher education and continuous training operate in a financial-economic self-management mode and can carry out economic activities, in accordance with the legislation in force. The salary conditions of the staff in the educational institutions that operate in a financial-economic self-management mode are approved by the Government.

Education can be supported by professional associations, patronages and guardianship authorities in accordance with the legislation in force.

Educational institutions can also benefit from other funding sources, namely:

• revenues from the provision of educational services against payment, as well as from research and technological transfer activity, under the law;

• income from the sale of articles made in the course of studies (in teaching households, experimental workshops, etc.), as well as from the leasing of spaces, equipment, land and other public or private property;

• grants, sponsorships and donations;

• other legal sources.