Public education spending on education covers a significant portion of the government’s annual budget in Nepal. Despite being one of the major priority sectors of the government, national statistics shows that public education has fallen to its lowest in the recent years, depicting the increasing gap between educational performance of the community schools and their institutional counterparts. This, merged with the fact that an increasing amount of government budget is being allocated in public education every year, it becomes imperative to question the efficacy of current model of financing public education and demands for its revision.