Needs-based Resource Allocation in Education : Via Formula Funding of Schools

The notion of 'need-based formula funding' refers to the impartial application of an agreed set of explicit rules to allocate educational resources in a manner which ensures that schools receive what they need in order to deliver a pre-specified quality of education.

The main message is that this procedure is of considerable benefit to both centralized and decentralized school systems in terms of increased levels of equity, efficiency, effectiveness, transparency and accountability.