ANALYSIS OF FINANCIAL FLOWS IN HIGHER EDUCATION INSTITUTIONS UNDER JURISDICTION OF THE MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE

Abstract

The article considers financial and economic relations in higher education institutions in Ukraine. The economic framework for financing higher education from the general and special funds of the state budget and usage of said resources are analyzed. In recent years, the amount of expenditures from the state budget for the HEIs has almost doubled, and the ratio of general and special funds during those years was within the following limits: funding from the general fund was from 58 % to 65 % of total expenditures, and funding from the special fund was from 42 % to 35 % respectively. The largest share in the costs of the HEIs was for the remunerations with accruals (KEKV 2100), and they were 63,27 % in 2014, 60,24 % in 2015, 56,8 % (minimum) in 2016, 74,99 % in 2017, 76,16 % in 2018, 76,25 % in 2019, 82,05 % in 2020. Thus, other expenditures required less and less funds every year, so the minimum value was recorded in 2020 at only 18 %. Other expenditures included expenditures for utilities and energy (KEKV 2270), which ranged from 6,12 % to 8,94 %; capital expenditures (KEKV 3000), the main source of which was the special fund, and they ranged from 2,71 % to 10,97 %; other current expenditures, which ranged from 28,57 % to 8,13 % (a decrease occurred in 2017, as academic scholarships were allocated to the separate program of funding KPKV 2201190). The analysis of the structure of expenditures showed that every year an increasing percentage of funding fell on remunerations with accruals, and growth costs decreased annually. Thus, we see that underfunding hinders the provision of quality educational services and competitive knowledge. For the effective functioning of the HEIs it is necessary to carefully plan financial resources; make every effort to attract additional sources of funding; to provide the HEIs with not only financial autonomy but also other components of university autonomy – organizational, personnel, academic.