In 2009, the revenues of higher education institutions (HEIs) totalled SEK 52.1 billion. 45 per cent of the operations of HEIs comprise first and second cycle programmes and just over half consists of third cycle programmes and research. 88% 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 programmesThe 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 researchThe public service agreements state how the funding should be split between the disciplinary domains as well as the amount that should be allocated to third cycle (doctoral) programmes and research. Although a high proportion of direct government funding goes towards research, this is increasingly financed from indirect government funding and external sources, including the government research funding body, foundations, local government, county councils and the private sector.