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

We must pay tribute to our government, which in 2019 decided to take measures to limit the possibility of setting dumping prices on the contract form of training, which is much lower than the costs provided from the general fund of the State Budget and can not ensure quality education.

At first glance, the system of tuition fees for individuals, business entities seeking to obtain highly qualified specialists in Ukraine was resolved by the adoption of Resolution No. 191 of March 3, 2020 «Some issues of indicative cost» (hereinafter in the Resolution.) And not creates any problems for either payers or HEIs. However, a detailed examination of the issue shows that problems exist and need to be addressed.

In general, such an event is supported by most HEI, but the form of its implementation is questionable. It is really necessary to eliminate the possibility of dumping in the system of higher education, but the adopted Resolution does not eliminate the possibility of setting a dumping price, but only narrows the range of HEI that have the ability to do so.

The calculation of the indicative cost of training is based on the ratio of expenditures from the general fund of the HEI on salaries with accruals, utilities to the estimated contingent of applicants studying under the state order. Since the numerator of the formula does not depend on the specialty, and the denominator is the estimated contingent, which significantly depends on the specialties for which specialists are trained in this HEI, it means that the larger the indexes of specialties the greater the denominator. Indices will have indicative prices for all their specialties lower than HEI with specialties with indices at the level of 1–1.2.

De facto, in 2020, some technical universities had a dumping price, for example for economic and sociological specialties in relation to prices for the same specialties in specialized universities, because their profiling ratio was close to one. This has led to unequal conditions in the enrollment of students in the contract form of education. Paradoxically, it was advantageous for entrants to go to technical universities for economics, sociology and other humanities, which, of course, will not improve the quality of training.

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