4.2 Problems of formation and use of the special fund of the Budget by institutions of higher education of Ukraine

To ensure the development of higher education it is necessary to use not only public funding, but also funds from other sources – individuals who agree to pay the cost of training to ensure future career growth in prestigious or interesting for them specialties, business entities that seek to obtain highly qualified specialists, local governments, aimed at ensuring effective governance at the local level by attracting qualified management professionals. In fact, a special budget fund is formed from the listed sources. The most successful in the formation of a special fund as shown in the monograph [18] are economic and classical universities. This thesis is partially confirmed in the monograph [39].

In reality, such a situation is formed within the framework of the «economy of impressions» operating in Ukraine today. Unfortunately, as shown in Section 2 of this monograph, our applicants are not interested in attitudes such as «price-quality», «the number of vacancies in the labor market-the number of graduates in the specialty». Romantic expectations from the specialties of «international relations and regional studies» and «international economic relations» under the influence of the media and social networks prevail over common sense. Although experience shows that employment in these specialties both in Ukraine and abroad is many times more difficult than, for example, in marketing, management, IT – technologies. However, the fact remains that the set of international specialties prevails over demand.

In addition, the attractiveness of some specialties is due to the lack of mandatory certificates of external examination in mathematics. This is also a problem, especially our secondary education. See Section 3 of this monograph.

Thus, the fullness of the special fund of the HEI largely depends on the demand for educational services from applicants and their parents.

In order to help entrants pay for tuition, the Government adopted Resolution of the Cabinet of Ministers of Ukraine No. 916 of June 16, 2003 «Procedure for granting targeted preferential state loans for higher education». Each year a certain amount is allocated for such loans. This Resolution to some extent stimulates the filling of the special fund of the Budget.

However, as is often the case, a great idea is discredited by the implementation mechanism. In this case, a strange scheme of providing and maintaining these loans was chosen. The envisaged mechanism does not ensure the return of targeted loans provided to young citizens for higher education.

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