Finance Management is a Serious Problem in Higher Education in Developing Countries

Abstract

Substantial progress has been made in financing higher education in developing countries, but how? Increase in budget, decrease in resources Domestic education expenditure (DIE) on higher education is one of the main indicators for financing higher education, it is the expenditure on higher education by the central government and state government, local authorities, other public administration, domestic and brings business together. It provides an overview of the overall situation of higher education funding. Funding for higher education has been increasing almost continuously since the 1980s. The structure of expenditure of establishments for higher education is as follows: 42% of expenditure is allocated for remuneration of teaching staff, 30% for remuneration of non-teaching staff, 19% for operations and 8% for investment. [MESRI, 2021]. We can note that according to the most recent data published by the OECD [2021], member countries spent an average of 1.4% of their GDP on tertiary education in 2018. Expenditure on tertiary education (public and private) is 1.5% of GDP. It is important to emphasize that they provide only partial information on the state of financing of higher education. Indeed, along with this increase in the total budget, student numbers are also increasing rapidly. This is an essential indicator to understand the current issues surrounding the financing of education. Students in higher education are not compensated by a proportionate increase in the budget.