The effectiveness of state financing of higher education

• Main Authors: Denys Zagirniak, Oleg Kratt, Mykhaylo Zagirnyak
• Format: Article
• Language: English
• Published: Hryhorii Skovoroda University in Pereiaslav 2020-12-01
• Series: Економічний вісник університету
• Subjects: higher education; state order; higher education institutions; effectiveness; financing
• Online Access: https://economic-bulletin.com/index.php/journal/article/view/727
• ISSN: 2306-546X; 2414-3774

Topicality of the research subject. The government authorities are concerned about higher education as human capital is being formed in this area.This concern is lessening as macroeconomic indicators show a lack of economic opportunities. Statement of the problem. Limited state funding for higher education requires improved spending of budget funds. Analysis of the recent research and publications. The state funding of higher education is considered at the macro- and micro levels from different angles. Selection of the unresearched parts of the general problem. There is no link between state funding of higher education at the macro level and the use of government funds at the micro level. Statement of the task and the purpose of the research. The method for the assessment of the finance provision of higher education has been improved, which makes it possible to achieve congruence between the mechanism of state order and the choice of educational services by consumers. Method or methodology of the research. A method for assessing the effectiveness of the financial provision of higher education in the space that has the parameters of “educational degree” and “field of knowledge” has been proposed. Statement of the basic material (results of the work). The low effectiveness of the use of state financial resources in relation to specialties and institutions of higher education of Poltava region has been determined. In the segment of “junior specialists” 113 places of the state order were not selected, and in the segment of “bachelors” – 98 places of state order. For most specialties in the segments the license amount did not correspond to the amount of state orders. The segments of the market of educational services differed significantly as to the state order. In the segment of “junior specialists” the share of the state budget places in the amount of demand was 85.16%, the share in the segment of “bachelors” – 60.24%, and in the segment of “masters” –  36.17%. The state stimulated potential consumers with the help of the state order to buy educational services. The state did not fund the realization of the HEI potential, encouraging them to commercialize educational programs. Field of application of results. The field of higher education. Conclusions. The proposed assessment methodology enables determining the effectiveness of the use of the state financial resources for specialties and institutions of higher education and the selection of possible alternative models for the distribution of the state order for their further financing.