Development of a school funding model using the principles of fiscal decentralization for general education public schools in Lithuania

Abstract

The article deals with the principles of fiscal decentralization and the main points for developing the funding model of general education in the Republic of Lithuania. The current funding model of general education is based on the principle of “pupil basket” which is characterized by a high level of centralization. The new direction of developing funding model is based on the concept of fiscal decentralization. The concept of fiscal decentralization and the principles of its realization in the public sector of economy, which include the distribution of financial resources between the central government and local authorities, as well as the increase of financial autonomy of local authorities are presented. The current general education schools funding model of Lithuania is analysed and the assumptions of said model development according to fiscal decentralization concept are discussed. The increase of efficiency in the sphere of education, as in many other individual spheres of activities can be achieved by increase of the financial autonomy of local authorities in the sphere of general education.