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

The solution to this problem is certainly urgent. There are several ways to solve it:

  • increase the percentage of the size of the academic scholarship, which determines the maximum amount of payment for a bed. Currently, this limit is 40 %. To compensate for the actual costs of HEIs, it is necessary to increase it to almost 75 %, which is unacceptable given the socio-economic situation in Ukraine;
  • increase the size of the scholarship to UAH 2,000, which will lead to a significant increase in expenditures under the Budget Program 01190 «Payment of academic scholarships to students (cadets), graduate students, doctoral students of professional institutions before higher and higher education». This increase will be for all scholarship students, not just those living in hostels;
  • increase the size of the scholarship, but reduce the percentage of students eligible for a scholarship. Currently, the norm is that 43 % of students who successfully study at the expense of the general fund of the Budget according to the rating receive a scholarship. A significant reduction in the number of students eligible for a scholarship is also unacceptable given the socio-economic situation in Ukraine;
  • divide the hostel fee into two parts. The first will be 40 % of the amount of the academic scholarship, and the second is the actual utility costs, which applicants must pay separately. This approach can also cause active dissatisfaction of students, especially in an unstable socio-economic situation in the country;
  • it is proposed to introduce a new budget program, for example, «Payment of compensation for actual utility costs to students living in hostels». The amount of expenditures can be estimated through the requests of the HEI, however, it is clear that they will be much smaller than increasing the size of the academic scholarship to UAH 3,000.

The solution of this problem is archivally important for each institution of higher education of Ukraine as, first, it returns their financial work to the rule of law, secondly, they will be able to use the funds released in this way to purchase the latest equipment from their laboratories.

These measures will allow universities to maintain and increase their own special fund by paying applicants for tuition and living in hostels.

However, in addition to customers in the form of individuals, the educational market is entered by businesses that are also interested in training competent professionals with higher education. Unfortunately, investing in education is not economically encouraged in our country.

Investing in higher education should be profitable for businesses of any form of ownership – this is the real experience of many developed countries. If the state is interested in co-financing higher education with business, then it is necessary to create objective motives for this. Such motives may be tax or organizational leverage.

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