This study describes the gradual adaptation of the methods of financing education to the objectives of development policy in Yugoslavia. The first chapter deals with the development of Yugoslav education and its financing in the context of economic growth during the period 1950-1966. The second chapter describes and analyzes the present Yugoslav educational finance system (which was adopted in 1972) with particular attention to the sources of finance and their distribution to and within educational establishments, as well as methods of redistribution in order to assist less-developed regions. The third chapter gives a tentative qualitative and quantitative appraisal of the present educational finance system, and the conclusion discusses the future development of this system. (Author/JG)