Formula-based funding

definition

A funding formula is an agreed rule for allocating resources to operational units such as schools that is universally applied to all [units] (Levačić and Downes, 2004: 20).

example of use

An analysis of almost 200 urban and rural districts in the Oromiya region and the Southern Nations, Nationalities and People’s Region showed that the introduction of formula-based funding led to declines in inequality between districts not only in terms of funding per student but also in terms of enrolment outcomes (UNESCO, 2014: 60). , The SGB is primarily a formula-based funding model, which consists of a base element for all schools, together with an equity element based on the characteristics of the students enrolled (Abu-Duhou, 1999: 79).

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