Transforming Education: How Hungary’s Top Technical University is Revolutionizing Funding with Performance-Based Models

Budapest University of Technology and Economics (BME) is entering a significant phase with a new performance-based funding model. This initiative, announced by the Ministry for Culture and Innovation, aims to link university funding more closely to measurable achievements in education, research, and innovation.

This approach fits into Hungary’s strategy to strengthen its economy and address future challenges. BME is set to boost its role in engineering and scientific education. As part of a longer agreement, BME will see a 25-year framework and a six-year contract focusing on specific goals.

One key objective is to increase enrollment in engineering, natural sciences, and IT programs by over 30%. The university plans to improve teaching methods and expand foreign-language courses.

BME also aims to strengthen its partnerships with companies. The goal is to grow corporate revenue by 80% and increase patents and innovations significantly. If BME meets its targets, it could receive over 10 billion forints in extra funding this year alone, which might increase further during the six-year evaluation.

The funding shift is backed by government resolution 1217/2025 (VI. 19.), marking an important step toward a more competitive higher education system in Hungary.

Minister Balázs Hankó noted BME’s vital role in the nation’s future. He sees it as an essential source of engineering expertise and a key player in national growth. This strategic change aims to ensure that Hungary continues to provide highly skilled professionals to meet its economic needs.

In recent years, performance-based funding models have gained traction in many countries. A study by the Organisation for Economic Co-operation and Development (OECD) shows that such models can lead to improved educational outcomes and better alignment with industry needs. As BME embarks on this new journey, it will be interesting to see how these changes are received by students and employers alike.

Overall, BME is poised for transformation, gearing up to support not just its students but also the broader economy.



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