Strategic Guidelines to Improve the Financing of State Higher Education Institutions in Ukraine

Abstract

The article analyzes the condition and problems of the system for financing state higher education institutions in Ukraine as well as ways for its optimization. Undoubtedly, it is important to determine the role and significance of education in society in the period of globalization, marketization and transformation processes. An analysis of different ways to diversify the sources of financing state higher education institutions is made and a system for financing a state HEI based of the results of its performance is proposed. It is proved that expansion of autonomy (financial, organizational and academic) of state HEIs is an inevitable process for ensuring a further increase in their efficiency. The reduction of budgetary allocations in general and in education, in particular, gives an impetus to state HEIs to search for alternative sources of financing. In this regard, it is necessary to pay attention to solving this problem, including the following: studying the world experience, analyzing the proposed mechanism for performance-based financing of state HEIs and considering ways to optimize allocation of their resources.

Keywords

• higher education
• state higher education institutions
• financial autonomy
• diversification
• performance-based financing
• optimization of financing