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learning process (including teachers’ salaries). Table 1: State expenditure on VET by type
Programme funding includes the remuneration
of internal and external staff of VET institutions, Type 2018 (EUR ) 2019 (EUR) 2020 (EUR)
98
as well as meeting operational costs and other

running costs of the facility. The Government also Voucher 3,521,291.02 € 4,701,387.67 € 6,057,373.86 €
funds short-term training programmes. These financing
programmes may be implemented by an educa- of which 3,521,291.02 € 4,686,451.48 € 5,547,671.64 €
tional institution, or by a legal entity under private public
law which meets specific standards (see Chap- of which private 0.00 € 15,010.88 € 509,702.22 €
ter VII). After authorisation, the entity can apply
for state funding in certain priority areas, and Targeted 3,203,161.20 € 4,506,468.55 € 4,360,113.46 €

these are specified and approved by the MoES programmes
on a yearly basis. Compared to state funding, Training and
contributions to VET by the private sector/em- re-training 0.00 € 79,969.35 € 193,387.65 €
ployers, donors or the learners themselves are
very limited. Total: 6,724,452.22 € 9,287,825.57 € 10,610,874.97 €

A reform project entitled “Diversified Financ- Source: Own presentation, based on data
ing Mechanisms in Vocational Education” was provided by MoES in February 2021,
amounts converted to EUR.
launched in 2019 with support from the UK Good

Governance Fund GGF. Performance-based Public expenditure on VET increased by 173%
funding models were developed as part of this in the period between 2013-2016, which reflects
project alternative . One major outcome was the growing interest of the Georgian Govern-
96
that private TVET providers were entitled to re- ment in this sector . The VET budget of more
99
ceive voucher funding in priority areas for the than EUR 8.6 million represented around 3% of
first time in 2019. This enabled 234 vocational overall state expenditure on education in 2017
students from private vocational education in- (see Table 1). After a decline in 2018 to EUR 6.7

stitutions to receive state funding that year . million, public expenditure rose to EUR 9.2 mil-
97
Moreover, amendments were made regarding lion in 2019, and to a new peak of EUR 10.6 mil-
the administrative costs of higher education in- lion in 2020.
stitutions implementing vocational education
programmes. Voucher financing now also ena- Particularly the areas of private voucher financing
bles higher education institutions’ administrative and training/retraining show a significant propor-
costs to be covered. This was not permitted tional increase. Public voucher financing has also
under the previous funding approach. been substantially expanded.

96 Deasy, O. et al. (2019). Policy Options for VET Financing in Georgia
97 Ministry of Education and Scienceof Georgia (2020)
98 At the time when the study was prepared, the exchange rate was 1GEL= 0.2489 EUR.
99 Tserodze, I. et al. (2019)

38 German Adult Education Association │ DVV International