* In some countries (e.g., many in the US): A combination of federal, state, and local governments, along with private institutions, play a role. The federal government might provide grants and research funding, states often heavily subsidize public universities, and local governments may provide some support. Private universities are largely independent of direct government control.
* In others (e.g., many in Europe): The national government plays a much larger role, directly funding and often regulating universities. Regional or local governments might have some involvement, but national-level control is more common.
* In still others (e.g., some developing nations): The national government may have primary responsibility, but resources may be limited, leading to significant reliance on private funding or international aid.
Therefore, a definitive answer requires specifying a particular country.