Financing of higher education: the experience of EU countries and the possibility of its implementation in Ukraine

Abstract

In the conditions of the transition period, education and science play an increasingly important role in the social development of the country. The United States and European countries have already passed the transition period, so the analysis of the state of financial support for higher education and the development of science in Ukraine is interesting. Recently, in many countries, approaches focused on funding educational institutions have been replaced by approaches focused more on direct support for students. Meanwhile, the agencies continue to receive funding indirectly from the state. In addition, institutions retain the possibility of receiving direct funding from the state. The article shows some aspects of financing the higher education system in foreign countries. An analysis and comparison of the financial activity of educational institutions was carried out. The experience of other countries, sources of income, costs and management of education resources are considered. The purpose of the article is to analyze and compare the financial activities of higher education institutions in foreign countries, to examine whether financial autonomy is a means for higher education institutions to survive in a changing environment. The main approach of this study is the study of the relationship between universities and the state and other interested parties. In the research process, general scientific methods of analysis, synthesis, systematization, and generalization were used. As a result, it can be pointed out that the state is currently unable to provide higher education with the necessary funds, conditions should be created so that higher education institutions can finance their activities in the most favorable economic regime. Today, there is every reason to organize multi-channel (mixed) financing in the field of education. Extra-budgetary financial support for the activities of higher education institutions is more effective and brings the greatest results. Therefore, the practice of state financing of education should be stable and unchanged. In order to increase economic efficiency, it is necessary to improve the entire fiscal mechanism - the tax base, the regulatory definition of financing volumes, and the system of inter-budgetary relations.