THE SYSTEM OF FINANCING UKRAINIAN HIGHER EDUCATION INSTITUTIONS: EFFICIENCY OF RESOURCE USE AND CHALLENGES

Abstract

The article provides a thorough analysis of the system of financing higher education institutions (HEIs) in Ukraine, focusing on the efficiency of use of budgetary and extra-budgetary resources in the context of current socio-economic challenges. The purpose of the study is to provide a comprehensive scientific assessment of the efficiency of the system of financing higher education institutions in Ukraine in the current conditions, to identify regional imbalances in the distribution of financial resources, to analyze the impact of the indicative tuition fee on the formation of small academic groups, and to develop conceptual approaches to improving the sustainability of financial support for higher education. The research methodology is based on the use of economic and mathematical tools, in particular, correlation analysis methods, which allowed to quantify the strength and direction of the relationship between the level of indicative tuition fees by region and the share of students enrolled in small academic groups. Additionally, the methods of statistical analysis of the data of the 2023-2024 admission campaigns, structural and comparative analysis were used to identify regional differences and features of the functioning of educational networks in the context of demographic and socio-economic factors. The results show a systematic increase in the share of small groups, which reflects the inefficiency of the distribution of state order and the deterioration of the quality of education due to insufficient funding. The correlation analysis revealed a weak inverse relationship between the indicative cost and the proportion of small groups, which indicates the dominance of other factors, confirms the multifactorial nature of the problem and requires a comprehensive approach to its solution. It is found that the level of indicative value alone is not a determining factor in the formation of small groups, and the problem is exacerbated mainly by demographic changes, regional economic depression, security risks and changes in the educational priorities of students. It has been established that small groups, despite the potential benefits of individualized learning, suffer from limited funding, which reduces the quality of training and their competitiveness in the labor market. The practical significance of the obtained results lies in the substantiation of the need to introduce regionally differentiated approaches to financing higher education institutions, improve the mechanism of distribution of the state order, taking into account qualitative and quantitative indicators, as well as develop adaptive models of state support for small but strategically important specialties. The proposed conclusions and recommendations can serve as a basis for the formation of new policies in the field of higher education financing aimed at ensuring the sustainability of the educational system in the context of demographic challenges and socio-economic transformations.