General approaches to financing education in Ukraine: public administration aspect

Abstract

The current economic situation does not meet educational needs, so most countries are changing the general approach to education funding, introducing targeted use of resources and diversification of funding sources, funding of educational institutions based on their performance and competitive processes, developing additional assistance packages for participants. Ukraine finances education with the help of financial and economic methods, tools and incentives aimed at its development. Methods of direct (state order) and indirect influence are used (independent choice of business entities in education). It is proved that the state and level of financing of education in Ukraine are significantly influenced by objective and subjective factors (global economic crisis in 2008, events of 2013-2014, foreign aggression, which continues up to this day in Ukraine, quarantine restrictions due to the announced COVID-19 pandemic in 2020). The state continues to use general approaches to education financing, however, in recent years an attempt has been made to introduce a new tool - the education subvention, which makes it possible to implement in education funding the budgetary principle of subsidiarity – the distribution of expenditures between state and local budgets. The principle of decentralization of management and financing of vocational (technical) education was also introduced. Now the share of the educational subvention is aimed at financing the salaries of educational institutions staff, as well as at improving the material and technical base of educational institutions and enhancing the quality of education. Despite attempts to change the approach to the distribution of Ukraine's consolidated budget for education, its funding is insufficient and not fully effective, which requires the authorities to continue searching for new approaches to education funding.