Abstract
The article identifies the main obstacles to the effective development of higher education in Ukraine, they are insufficient expenditures and inefficient mechanism of distribution of financial resources. Expenditures on higher education are increasing annually, but their amount in foreign currency is negligible compared to European countries. In 2020 a new formulaic approach to the distribution of state budget expenditures among higher education institutions was introduced. It includes three components: the amount of funding for stable activities, the amount of funding depending on performance indicators and the reserve. The effectiveness of the approach is assessed. On the one hand, the formula increased the level of transparency in the distribution of budget expenditures and allowed taking into account the results of HEIs activities when calculating the amount of funding. On the other hand, it legitimized the mechanism of redistribution of resources, as a result of which the lion's share of expenses is concentrated in educational institutions of Kyiv, Kharkiv, Lviv (47.7% of funding belongs to 41.7% of higher education applicants). Regions in which universities are located, according to the share of costs in the total amount of funding, are grouped in the article: the cities of Kyiv, Kharkiv, Lviv, Dnipro and Odessa regions, regions with a share of resources of 2-5% of funding, and regions with a share of resources of less than 2%. Due to changes in the Formula in 2021, the amount of funding for stable activities has been increased by the amount of performance-based funding. The maximum expenditure level was increased from 120% to 130% compared to the previous year, the minimum level was reduced from 95% to 90%, and for an individual structural agency - 50%. This reduced the amount of reallocation. For example, in 2020 the adjustment of the minimum level of funding for educational activities (additional funding) was carried out for 24 HEIs for a total of 12.1 million UAH, and for 6 institutions the adjustment of the maximum level (reduction of estimated funding) was carried out in the amount of 26.6 million UAH. In 2021, only 2 HEIs received additional funding (23.5 million UAH), and for 10 HEIs the estimated expenditures were reduced (62.2 million UAH).
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