The paper considers the higher education financing models used in different countries. The funding mechanisms, as well as the role of the state in financial resources allocation, are discussed. An analysis of a wide range of research papers shows that there are two key financing models in accordance with a typology of budgetary financing approaches: institutional and demand-based. In the institutional model of higher education funding, the object of financial flows is represented by universities, while in the demand-based model it is students. The models may include different sets of mechanisms to fund. Each mechanism, in addition to the conditions for obtaining budget funds, contains an institutional framework which determines the procedure for spending funds for the needs of the university. The results of the analysis demonstrate that the format of the higher education budgetary financing system is a derived element from the institutional landscape of the state and the form of public finance management. At the same time, the role of the state is largely determined by policy aspects related to the structure of funding and the level of universities autonomy.