Methodological Approaches to Funding Tertiary Education Institutions Given the Relationship between GDP and Budget Expenditure on Education

Abstract

The main issues of funding tertiary education in the EU in the light of the tertiary education system role in shaping Europe-2020 strategy were investigated. The methods of using the mechanisms of the formula model for tertiary education institutions funding were considered. The importance of methods and forms of funds allocation to universities depending on ownership forms was substantiated. The methodological approaches to financial support of tertiary education institutions in the EU were defined. The existing experience of European countries with regard to the possibility of financial autonomy of European tertiary education institutions was studied. The structure of expenditure on tertiary education in the countries of the world and Ukraine was established. State expenditure on tertiary education (bachelor, master and doctoral programmers, including research and implementation of scientific developments) in % of the GDP was distinguished. The balance between public and private funding of tertiary education in different OECD countries and Ukraine as well as allocation of expenditure on tertiary education in Ukraine by funding sources were presented. The model of correlative linear regression dependence of the GDP on the budget expenditure on education was built, and the direct dependence between the indices was revealed. Keywords—expenditure structure, budget, balance, methods, mechanisms, funding sources, consolidated budget, GDP.