Funding of Swedish Higher Education Institutions
In 2015, the total expenditure on education and research at Sweden's Higher Education Institutions (HEIs) amounted to SEK 66.7 billion. This corresponds to 1.6 per cent of Sweden's gross domestic product (GDP).
80 per cent of the funding for the operations of the higher education institutions comes from the public purse. The remainder comes from private funding agencies and financial revenues. The Government issues public service agreements on an annual basis detailing the obligations of the higher education institutions.
Funding for first and second cycle courses and programmes
The funding for first (undergraduate) and second cycle (Masters') courses and study programmes is based on the number of full-time equivalent students and the annual performance equivalent. The amount of funding varies depending on the disciplinary domain. There is also a funding cap that limits the size of funding a HEI may receive.
Funding for third cycle programmes and research
Funding for third cycle programmes and research is specified in the public service agreements for higher education institutions. Part of the state funding comes via the government research funding body. In addition, many higher education institutions receive external funding from foundations, local governments, county councils and the private sector.