4.3 Financing of HEI from the general fund of the Budget of Ukraine

However, even with a correct economic justification of indices and indicators, according to their essence, the proposed formula does not have the leverage of the state. Therefore, it is proposed to introduce an index of state support for the specialty, the size of which can be justified by the current or strategic needs of the state!

Consider the current model with comments and suggestions for its improvement.

The amount for all HEIs in 2020 had the amount of expenditures to finance their stable activities (FSA) UAH 11,874,372,060. Some basic and calculated data are given in [18].

This is how the first component of HEI financing is formed.

The second part of the amount of funding provided, depending on the results of activities (FRA), is formed as the difference between the amount of expenditures to finance the educational activities of HEI FD, the amount of expenditures to finance their stable activities (FSA) and the reserve R.

It is critical for the Ministry of Education and Science to ensure compliance with the amount of expenditures for financing the educational activities of the HEI FD, the volume of the state order must take into account the size of the estimated contingent of applicants, not the actual contingent (the difference between these values will be understood later). This is especially true in conditions when the growth of wages and utility tariffs is unpredictable.

The share of expenditures on financing educational activities, which remained after the allocation of expenditures on financing their stable activities (FSA), is distributed by the MES between the volume of expenditures for the performance of the i-th institution of higher education (FRA) and the reserve of financing (R).

According to the current version of the Resolution of the Cabinet of Ministers of Ukraine No. 1146, the consolidated amount of the reserve (R) for a certain year, its distribution among higher education institutions, use and adjustment are determined by the MES, in accordance with guidelines that are not publicly available.

According to the author, the size of the funding reserve (R) should be approximately at the level of 10–15 % of the share of expenditures for financing educational activities, which remained after the allocation of expenditures for financing their stable activities (FSA). This reserve gives the Ministry of Education and Science the opportunity to ensure effective operational management of the free economic system during the school year in conditions of socio-economic instability. This reserve, for example, can be used to finance the costs of fire safety for the installation of fire safety systems, other capital expenditures to ensure the viability of fire safety and their dormitories! Moreover, the amount of funding from the general fund under the budget program 01160 «Training of higher education institutions and ensuring the operation of their bases of practice», separately almost never includes development expenditures.

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