Sustainable budget for tuition exemption policy

Lê Thanh Uyên |

The policy of exempting tuition fees for public high school students is a historic step forward but will also put a great burden on the state budget.

The tuition exemption policy from preschool to high school is a strong commitment of the State in investing in the future. When this decision was made, there were certainly calculations on financial resources and implementation roadmap.

Data from the Ministry of Finance shows that the estimated expenditure for education and training (ET) in 2024 accounts for about 16.3% of the total state budget expenditure, equivalent to VND 402,926 billion. Tuition exemption will increase the budget burden, requiring financial solutions to maintain policies without affecting the quality of education and other important areas.

There have been valuable lessons from previous countries.

Finland and Sweden are successful thanks to a transparent and fair tax system, ensuring that the education budget is fully funded. Germany exempts tuition fees but still maintains public-private partnerships, encouraging universities and high schools to call for funding from businesses to reduce financial pressure. Meanwhile, Chile has implemented mass tuition exemption but lacks a reasonable source of compensation, makes it difficult to maintain the quality of education and has to adjust policies.

That shows that tuition exemption is not a destination, but a journey that requires careful preparation.

To ensure financial resources, optimizing spending is a prerequisite. Cutting unnecessary administrative expenses, streamlining the education management apparatus, and investing in technology are feasible solutions, helping the budget to be used effectively.

Expanding new sources of revenue can also create more resources. For example, adjusting tax policies: such as large real estate taxes, abandoned land not only helps increase the budget, increase investment in education but also encourages the reasonable use of resources. Some countries have imposed higher taxes on alcohol, beer, and tobacco and used this source of income to finance education. Environmental tax is also a potential choice, especially when sustainable development is becoming a top priority.

Public-private cooperation may be a trend. Many corporations can sponsor scholarships, teaching equipment or invest in training programs, contributing to reducing pressure on the public budget. If there is a policy to encourage businesses to contribute to education through tax incentives or effective cooperation models, we can mobilize more resources from the private sector.

The equally important thing is to allocate a reasonable budget, ensuring fairness in access to education. Prioritizing disadvantaged areas and closely monitoring the use of the budget to avoid waste and loss will help the policy achieve real efficiency.

When the tuition exemption policy comes into effect, sustainable financial solutions will be the key to ensuring that all children can go to school - without putting much pressure on the national budget.

Lê Thanh Uyên
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