The abstract of the thesis is based on the analysis of higher education funding in Croatia. The paper examines the current structure of the educational system, with a particular focus on the challenges and opportunities of financing higher education. The Croatian education system faces limited resources compared to the European Union average, highlighting the need for increased investment to maintain competitiveness and the quality of education. The state budget remains the primary source of funding, but reliance on tuition fees as an additional source raises concerns about access to education for all, especially for socially vulnerable groups. The paper also explores the structure of student bodies, the success rate of studies, and various models of financial support, including scholarships and student standards. A reform of funding is recommended, which includes long-term strategies for better utilization of existing resources, encouraging private investments, and developing new programs. The importance of additional investments in scientific research and the international recognition of higher education institutions is emphasized. In conclusion, the paper suggests that sustainable and competitive funding of higher education requires careful planning, an increase in public funds, and innovative approaches to achieve inclusivity and adaptation to labor market demands, thereby contributing to the country's social and economic development.