CONSOLIDATED BUDGET EXPENDITURE ON EDUCATION INSTITUTIONS IN UKRAINE

Abstract

The factors on which the sources of financing higher education institutions depend have been considered in this article. The scientific literature has been reviewed and a mechanism for financing higher education in Ukraine has been built during the research. It is established that this mechanism is an example of the functioning of two important subsystems: provision and regulation. The use of mechanisms is possible due to the availability and use of financial resources. The study of methods of managing the financial resources of higher education institutions has allowed to distinguish the following methods: budget financing, attracting credit, self-financing. It is established that the most important source is the state funding, which is based on the principle of strategic orientation, on the basis of which a clear strategy is created that will ensure the effectiveness of the higher education system. As a consequence, we have analyzed the volume of consolidated budget expenditures on education in the structure of total consolidated budget expenditures. In the course of the research, there is a tendency of sharp changes in the share of higher education expenditures in the structure of consolidated budget expenditures on education, due to the need to attract private sources of financing for the higher education system. It should be noted that the growth of volumes is caused by a large number of inflationary processes of the modern economy, and their solution requires considerable resource-intensive costs. An important indicator of the assessment of the state of higher education funding is the analysis of the ratio of budget expenditures to GDP. The structure and trend of changes in the volume of expenditures of consolidated budget for financing of education which includes financing of preschool, general secondary education, vocational and higher are determined. The analysis of expenditures on the functioning and development of higher education institutions in relation to GDP has made it clear that the largest share is focused on financing of secondary education. It has been analyzed in the study how the number of higher education recipients changes with the changes in funding. It is established that a rather large dependence of the decrease in the number of students is due to the demographic situation in our country and individual regions. In addition to the indicators reported in the study, a significant proportion accounted for the inability to successfully pass the external independent assessment testing to the appropriate level.