№ 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)

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