All entities that provide funds for education, either initially or as final payers, are classified as either governmental (public) sources or non-governmental (private) sources, the sole exception being "international agencies and other foreign sources", which are treated as a separate category.  There are three types of financial transactions: Direct expenditure on educational institutions; Transfers to students or households and to other private entities; and Households' expenditure on education outside educational institutions.

Government expenditure refers to spending of public authorities at all levels and include three subcategories: central (national) government, regional government (province, state, Land, etc.) and local government (municipality, district, commune,etc.). Expenditure that is not directly related to education (e.g. culture, sports, youth activities, etc.) is not included unless provided as ancillary services. Private expenditure include two subcategories: households (that is to say students and their families) and private entities other than household. In this last category can be isolated expenditure of firms for specified educational activities. Funds from international agencies and other foreign sources include funds funds from international sources paid to governments or paid directly to educational institutions.