Azerbaijan inherited high level of education from the former USSR. The Azerbaijani Education Minister states that Azerbaijan has no one unable of reading or writing.
According to UNICEF, 99% of men and 96% of men are educated in Azerbaijan and as compared to 1990 the indicator of literacy in Azerbaijan remained unchanged. Such high level of education is maintained in Azerbaijan despite in interruption of education of IDPs and refugees. The elementary and secondary in Azerbaijan remains obligatory and free, while stipend system is still maintained for students of universities.
Nevertheless, the general economic situation in the country during the initial years made its negative impact on the education sectors. The public expenses in this sector dropped considerably, though the public budget expenses in this sector occupies almost the top place.
Despite attempts of increasing the public budget expenses for educations, taken in 1994 and 1995, the expenses as part of the GDP continue decreasing.
On the background of positive changes in the economic situation in the country, the education expenses in the country does not exceed 3%-4% of the GDP, while almost 80% of the public budget funds are spent on the payment of teachers' salaries. Thus, the amount of public expenses for education comprised even 3% of the GDP in 2006 and the fact does not present Azerbaijan in the better way.
As of data provided 3 years ago, some $100 is spent for study of one student in the country a year.
In 2007 some AZN 733.2mln will be spent on the education out of the public budget, or AZN 234.7mln (42.7%) more as compared to last year. The funds comprise 12.8% of total expenses of the public budget, or 12.4% more as compared to 2006. The education expenses in the composition of GDP forecasted for 2007 is 3.3%.
Structure of education expenses allocated out of the public budget
| Names | Sum (in mln AZN) | Share in total expenses,% |
| Total education expenses | 733,2 | 100 |
| Kindergarten and elementary education | 53,0 | 7,2 |
| Incomplete and secondary | 438,2 | 59,8 |
| Boarding schools and special | 28,7 | 3,9 |
| Trade schools and colleges | 34,6 | 4,7 |
| High education | 57,95 | 7,9 |
As the table shows, major part of education funds - 59.8% - is spent on incomplete and secondary education, 7.9% higher education and 7.2% kindergarten and elementary education.
The investment expenses for education sector in 2007 are forecasted at AZN 82mln. The funds will be spent on construction of schools commenced in 2006, the construction of 292 schools for 105,560 pupils, overhaul of over 100 schools. With respect to provide heating of schools in the winter period the public budget assignments for the Education Ministry comprised over AZN 5mln. Moreover, monitoring in the sector revealed emergency state of up to 400 school buildings in the country, while over 200 schools are in need of overhaul.
The public budget assignments for the education sector are distributed among 15 structures: 7 ministries, 1 state commission and 7 universities. Sometimes, major part of funds (approx. 90%) is transferred to the Education Ministry. The rest 4.8% will be spent on education facilities of the Ministry of Education and Tourism and 5.1% is distributed among 13 structures.
For their economic content the education expenses, assigned out of the 2007 public budget, can be classified in 5 directions: AZN 589.84mln for payment of salaries, AZN 74.5mln - purchase of goods and services, AZN 25.4mln payment of stipends and other social benefits, AZN 16.3mln purchase of non-monetary assets and the rest AZN 27.2mln for other expenses.
It is logic that in condition while most part of expenses are directed at payment of salaries of teachers, the governmental system suffers financial difficulties and the results of postponed state investments become tougher. Respectively, the sphere of education needs additional financing and is happy for assistance from out. This assistance is rendered by different Funds as state finances for equation programs, in the form of credits from international organizations, grants from different countries and donations by private persons.