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The overwhelming majority of universities and other French institutions of higher education are national institutions. Since there are also no student tuition fees, about 80 percent of the expenses of higher education are covered by the national budget.

Although a diversity of financial resources other than the national government, including local governments and businesses, is being sought to cope with the increased financial burden accompanying expansion, France is holding to its philosophy of the national government being responsible for carrying out public education, and the situation is basically being handled through increases in the national budget. The share of the national budget held by the Ministry of National Education's higher education budget grew from 2.8 percent in 1995 to 3.3 percent in 2002 ( Figure 1-4-2 ).

At the same time, efficient allocation of the national budget is also being considered in the form of the Contract Policy described above. The execution of these contracts is examined every year, and budgeted amounts may be decreased depending on the results.

Figure 1-4-2 Higher Education Expenses as a Percentage of GDP (2000)