Government funding of tertiary education
In real terms, government expenditure on tertiary education has increased by 45% since 1999/2000.
Date Updated: March 2008
Indicator Description
Government funding of tertiary education as a percentage of GDP.
What We Have Found
In real terms, government expenditure on tertiary education has increased by 45% since 1999/2000.
Why This Is Important
The Government plays a crucial role in ensuring lifelong access to education and skills development through its investment in tertiary-level learning outcomes. A knowledge economy places a premium on innovation, ideas and the ability to adapt to new technologies and ways of working. Access to tertiary-level education helps ensure individuals and their communities are equipped for life in a knowledge economy.
In this context, an accessible, high-quality, tertiary-level, learning outcomes system must be financed to meet many needs and provide a wide range of choices and educational opportunities for all New Zealanders. Government support for tertiary education takes a variety of forms and reflects the diversity of learners and their needs, helping to remove barriers to participation and to ensure that the tertiary system is able to cope with increasing levels of demand.
How We Are Going
In 2006/07, the government’s total budget for tertiary education was $4,419 million, an 8.5% increase on the 2005/06 actual spending of $4,074 million. Of this budget, $3,169 million was operational expenditure and $1,250 million was capital contributions.
| Total government expenditure on tertiary education (1999/00 to 2006/07) |
 |
Total government spending (including capital expenditure) on tertiary education grew over the period from 1999/00 to 2006/07 by 75% in nominal terms, from $2,531 million in 1999/00. In real terms, this represented an increase of 45%.
The major items in the government’s tertiary education expenditure between July 2006 and June 2007 were:
- $2,137 million (48% of the budget) for tuition subsidies to fund student places at tertiary education providers
- $1,176 million (27%) for student loans
- $382 million (8.6%) for student allowances, and
- $280 million (6.3%) for other programmes, including industry training and programmes such as Youth Training, Modern Apprenticeships, Gateway and Skill Enhancement.
| Government funding of tertiary education as a percentage of GDP (1999/00 to 2006/07) |
As a percentage of gross domestic product, total tertiary education expenditure increased over each of the last two years, while operating expenditure remained unchanged from 2005/06. The main difference between total and operating expenditure is the amount of the Student Loan Scheme that was treated as a capital expense. In 2006/07, total expenditure was 2.7% of gross domestic product and operating expenditure was 1.9% of gross domestic product.
Where To Find Out More
The following indicators, relating to student numbers and expenditure on education, should be considered:References
Ministry of Education (2007). New Zealand's Tertiary Education Sector Profile & Trends 2006. Wellington: Ministry of Education.
Ministry of Education (2006). Tertiary Education Strategy 2002/07: Monitoring Report 2005.Wellington: Ministry of Education.