№ 11/2018

Fìnansi Ukr. 2018 (11): 7–20

FINANCE OF EDUCATION AND SCIENCE

TYMCHENKO Olena ¹

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0002-8143-1261

Theoretical principles and pragmatics of the program-target method of the higher education funding in Ukraine

The advantages of the program-target method are not realized in Ukraine. It is necessary to improve it but taking into account the changes in the approaches to the higher education funding. It is about a new formula based on the funding model which includes two components: stability expenditures and development expenditures. The main hypothesis is that using the program-target method in practice does not correspond to the theoretical foundations. To test the hypothesis, the author analyzes the regulatory documents and managerial decisions concerning the formation and implementation of the budget programs in the educational field in Ukraine. The main conclusions are: 1) the social and economic problem which the budget programs in education should target is not determined in Ukraine; 2) the goals and tasks of the budget programs are not correctly defined; 3) there is a difference between strategic management foundations and the practice of program-target method realization concerning the sequence of determining goals and resources for their achievement; 4) the efficiency indicators do not meet the theoretical criteria, in particular the indicators of effectiveness and quality. According to the strategic management principles, first the goals and tasks should be determined and then the amount of financial resources required to achieve them. In Ukraine’s budgetary field, first the amount of financial resources is determined and then – goals and tasks. Given the insufficient amount of financial resources, the indicators of development should be achieved without necessary funding. The author suggests the ways how to solve the revealed problems in the higher education field.

Keywords:program-target method, budget program, higher education funding, budget program efficiency indicators

JEL: H52, I22

TYMCHENKO O. . Theoretical principles and pragmatics of the program-target method of the higher education funding in Ukraine / O. . TYMCHENKO // Фінанси України. - 2018. - № 11. - C. 7-20.

Article original in Ukrainian (pp. 7 - 20)

Download

Downloads :310

1. Vartsaba, V. I., Tranovych, Yu. P. (2014). Program-target method as an instrument of budget planning. Scientific herald of Uzhgorod University. Economics, 3, 100–102 [in Ukrainian].
2. Korniienko, N. M. (2014). Target-oriented method of budget expenditure planning as part of state social and economic development. Scientific Journal of Kherson State University. Series “Economic Sciences”, Vol. 9, Iss. 1, 179–182 [in Ukrainian].
3. Mishchuk, H. Yu. (2014). Problems of introduction of management by objectives of budget planning in securing public needs. Business Inform, 4, 376–381. Retrieved from business-inform.net/export_pdf/business-inform-2014-4_0-pages-376_381.pdf [in Ukrainian].
4. Dehtiar, Ya. (2016). Foreign experience of the use of program-target method in the budget process of Ukraine. Visegrad Journal on Human Rights, 2/2, 51–56. Retrieved from vjhr.sk/archive/2016_2_2/9.pdf [in Ukrainian].
5. Dehtiar, Ya. (2016). The program-target method in the budget process in the conditions of Ukraine’s integration into the European Union. Entrepreneurship, Economy and Law, 8, 130–134 [in Ukrainian].
6. Novikov, V. M. (2016). The program budget: international experience and Ukrainian practice. Demography and Social Economy, 2, 51–61. Retrieved from dse.org.ua/arhcive/27/4.pdf [in Ukrainian].
7. Poteriailo, I. Yu. (2015). Foreign experience of the application of program-target method of budgeting at the present stage in Ukraine. Scientific Information Bulletin of Ivano-Frankivsk University of Law named after King Danylo Halytskyi, 11, 331–337. Retrieved from visnyk.iful.edu.ua/wp-content/uploads/2015/10/48-11-15.pdf [in Ukrainian].
8. Stativka, N. V., Marchenko, L. Yu. (2016). Introduction of program-target method for local budget planning and implementation in Ukraine: international experience. Theory and practice of public administration, 2, 1–7. Retrieved from www.kbuapa.kharkov.ua/e-book/tpdu/2016-2/doc/3/302.pdf [in Ukrainian].
9. Ohon, Ts. H. (2009). Program-target method and financial provision of budget programs. Finance of Ukraine, 7, 20–29 [in Ukrainian].
10. Nievieshkina, T. S. (2012). Problems of determining the performance indicators of budget program implementation in Ukraine. Herald of the Dnepropetrovsk National University. Series “Economics”, 6, 106–115 [in Ukrainian].
11. Lohvinov, P. V. (2017). Program-targeted budgeting in the conditions of decentralization of public finances (Master’s dissertation). Kyiv: Kyivskyi natsionalnyi ekonomichnyi universytet imeni V. Hetmana. Retrieved from kneu.edu.ua/userfiles/d-26.006.04/
2016/PBB_in_the_FD_11_01_17_222.PDF [in Ukrainian].
12. Verkhovna Rada of Ukraine. (2010). Budget Code of Ukraine (Act No. 2456-VI, July 8). Retrieved from zakon5.rada.gov.ua/laws/show/en/2456-17 [in Ukrainian].
13. Cabinet of Ministers of Ukraine. (2002). The concept of application of the program-target method in the budget process (Decree No. 538-р, September 14). Retrieved from zakon.rada.gov.ua/laws/show/538-2002-%D1%80 [in Ukrainian].
14. Ministry of Finance of Ukraine. (2016). The program-target method in the budget process at the level of local budgets. Retrieved from www.openbudget.in.ua/uploads/library/book/book_file/5832e28267cb7d5c26000020/%D0%9F%D1%80%D0%B0%D0%BA%D1%82%D0%B8%D1%87%D0%BD%D0%B8%D0%B9_%D0%BF%D0%BE%D1%81%D1%96%D0%B1%D0%BD%D0%B8%D0%BA_%D0%9F%D0%A6%D0%9C_2016.pdf.
15. President of Ukraine. (2013). On the national strategy for the development of education in Ukraine until 2021 (Decree No. 344/2013, June 25). Retrieved from zakon2.rada.gov.ua/laws/show/344/2013 [in Ukrainian].
16. Strategic Advisory Group “Education”. (2014). The concept of the development of Ukrainian education for the period 2015–2025. Retrieved from tnpu.edu.ua/EKTS/proekt_koncepc.pdf [in Ukrainian].
17. Ministry of Finance of Ukraine. (2018). Information about the purpose, tasks and performance indicators of budget programs for 2019. Retrieved from: mon.gov.ua/storage/app/media/budzhet/2018/09/220.pdf [in Ukrainian].