IMPROVING THE FINANCING OF THE EDUCATION SYSTEM IN UKRAINE AS A PREREQUISITE FOR SUCCESSFUL REFORM

Abstract

The article characterizes the system of educational institutions financing in Ukraine. The current state of Ukraine’s budget financing of education i has been studied: an increase in the absolute volume of resources directed to the educational sphere has been identified, but there is a reduction in the percentage value of this indicator in relation to GDP and non-compliance with the minimum amount of budget financing established by law. Local budget funds play a significant role in the budgetary sources of education funding, but against the background of the introduction of martial law and the budget austerity regime in 2022, there was a decrease in their volume and a reduction in their percentage values. The structure of expenditures of the Consolidated Budget for education shows the largest amount of funds is provided for the financing of general secondary, professional pre-higher and higher education (totally 70.9%). It is stated that the financing of educational institutions in Ukraine through the budget educational subvention provides for the minimum provision of current institutions expenditures (wages and social security contributions). Updating the material and technical base, improving the qualifications of teachers is entrusted to local budgets. In 2022, budget funding of utility costs of higher education institutions was stopped, which, as well as the purchase of equipment and books, renovation of dormitories, are financed from revenues from paid services. The reduction of the state order for higher education applicants, the optimization of the network of educational institutions have led to a reduction in citizens' access to higher education, primarily to study at the expense of the state budget. The need to solve the identified problems is recognized, in particular by financing the acquisition of higher education by a person, and in favor of more efficient budget funds spending and attracting private financing: financial markets, donations and funds of interested subjects – businesses and households (through the provision of state targeted support to students, grants, preferential loans, vouchers and other non-budgetary instruments that will serve as additional investment resources for both educational institutions in particular, and the development of the educational sector in general).