This policy note is part of the WorldBank's Programmatic Public Expenditure Review (PER)work program for FY2012-2014. The PER consists of a seriesof fiscal policy notes, which aim at providing theGovernment of Tajikistan with recommendations to strengthenbudgetary processes and analysis. This policy note, thethird in the series, examines public expenditures oneducation in Tajikistan, focusing on assessing efficiencyand equity of general education spending. Section 2 reviewsthe characteristics of Tajikistan's educational system,including access and equity in enrollment and quality ofeducation. Section 3 analyzes overall public spending oneducation and a breakdown by financing source, subsector,and expenditure category, as well as unit costs by level ofeducation. Section 4 examines general education financing,which is the largest spending unit within the educationsector, in more depth. Section 5 covers demographic trendsand enrollment projections and their implications oneducation spending. Section 6 provides the main conclusions:1) the level of public spending on education in Tajikistanis comparable to similarly developed countries; 2) thepre-school enrollment rate is extremely low; 3) whileprimary education is near universal with gender parity,early dropouts are a significant problem; 4) availableevidence suggests poor quality of early learning atpre-primary and primary levels; 5) the current wage systemdoes not provide strong incentives for highly qualified newand experienced teachers; 6) per capita financing of generaleducation has resulted in many positive outcomes overall,but implementation varies by district; 7) unit costs for newconstruction of school infrastructure vary considerably; 8)high unit costs of pre-school, vocational, and tertiaryeducation suggest significant inefficiencies within thesesub-sectors; and 9) demographic developments put an upwardpressure on educational spending, particularly forincreasing general secondary education spending. Methods toincrease the fiscal space for education are discussed.