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Ensuring adequate and efficient education funding

Latvia’s public expenditure on education and per-student funding at all levels are lower than many OECD countries which means that efficiency in education spending is especially important to make the most of what is invested. In the longer run, there is a risk that education spending will prove inadequate to achieve the desired outcomes of equity and quality, especially given the pressure to invest in other social services. Long-term efficiency gains depend on the success of the reforms in school and tertiary education funding which Latvia has already embarked on and will require making clear spending choices. Raising teacher salaries to nationally competitive levels will improve recruitment but will necessitate bigger class sizes and higher student-teacher ratios. The demographic decline will require Latvia to revisit the education system’s capacity, including numbers of schools and tertiary education institutions, and staffing levels.

 
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