4.3.2 Justification of the list and size of indicators from the formula for the distribution of budget funds

Thus, the analysis of the set of indices and indicators used in the Resolution of the Cabinet of Ministers of Ukraine 1146 indicates the urgent need to refine it. The formulaic approach, which was declared in the process of preparation of this resolution, remains only a fashionable motto, as it is not based on economic calculations and does not direct the management of HEIs to improve the efficiency of educational institutions.

If do not change the structure of the indices and do not introduce an additional index of state support for specialties necessary for the strategic development of the state, this resolution will not give the expected effect. In fact, its operation during 2020 confirms this thesis.

The system of indicators that should assess the quality or efficiency of the functioning of the HEI does not provide a systematic assessment. The authors of the 2020 development stated the following:

  • priority funding from the general fund will be received by the HEI with a contingent of applicants studying under the state order, in the amount of more than 10 thousand people with a coefficient of 1.5;
  • the assessment of external stakeholders is taken into account only for the investment of scientific and technical developments, executed in the form of economic agreements and international agreements in the scientific field;
  • the rating by international rating systems is taken as «yes – no» or «black – white».

It is not easy for the HEI to develop an effective development strategy within such limits.

Given the limited public funding for higher education, every effort should be made to obtain co-financing from external stakeholders. The developers of the Resolution of the Cabinet of Ministers of Ukraine No. 1146 did not pay attention to such a significant aspect of the activity of the HEI as training. Investments from international institutions in improving the quality of initial work are not taken into account, and therefore not encouraged. Thus, lose part of the co-financing, significant assistance to the state. They also do not encourage co-financing from customers of educational services, although it is undeniable that the most popular HEIs provide their development with a special fund formed by the payment of external stakeholders for training. Therefore, the introduction of the popularity index of HEIs is an economically justified measure.

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