Purpose: The main objective of this article is to analyze trends in funding educational institutions (EI) and to assess the effectiveness of the distribution of government expenditures on primary education at the macro-and micro levels. Design/Methodology/Approach: Based on the analysis and synthesis of information from countries' analytical reports, statistical databases and scientific literature, the basic entities involved in the formation, management and distribution of education expenditures in different countries at different levels have been considered, as well as an analysis of the interaction between them has been conducted. Main mechanisms of distribution of expenditures for the educational process in different countries have been observed. Findings: The different approaches used in the distribution of expenditures have been highlighted and the most effective methods of conducting the policy of financing the system of education among European countries have been identified. The basic factors have been outlined that need to be taken into account when formulating funding formulas that can be adjusted to support the goals of policies aimed at improving the efficiency, equity and quality of education. Possible options for financial and economic support have been considered. Practical Implications: A model of a decentralized management system for financial and economic support of the educational process based on foreign experience has been proposed to ensure the implementation of effective mechanisms for financing education. Originality/Value: The study emphasizes that the formation of an effective decentralized system of financing EIs should be implemented in parallel with an effective internal system of financial resources management.