IMPROVEMENT OF BUDGETARY FINANCING INSTRUMENTS FOR GENERAL SECONDARY EDUCATION IN UKRAINE IN THE CONTEXT OF ENSURING THE DEVELOPMENT OF THE KNOWLEDGE ECONOMY

Abstract

The aim of this article is to analyze the existing budgetary financing instruments for general secondary education in Ukraine and to develop recommendations for their improvement to ensure the sustainable development of the knowledge economy. Budgetary financing plays a key role in providing accessible and high-quality secondary education, which serves as the foundation for the development of a knowledge-based economy in Ukraine. Investments in education contribute to the enhancement of human capital, increased labor productivity, and long-term economic growth. However, insufficient funding and its inefficient allocation remain major challenges hindering the development of the education sector. The dependence of HDI on the share of research and development (R&D) expenditures in the GDP of OECD countries and Ukraine was studied, which made it possible to assess the impact of investments in science and innovation on the quality of education, income level and life expectancy of the population. The relationship between the average score in three subjects in the PISA study and GDP per capita (PPP) in countries with different levels of R&D funding is analyzed. It has been established that countries with higher R&D expenditures demonstrate higher levels of human development and economic growth. The study also explores the mechanism of budgetary financing for general secondary education in Ukraine and the main sources of its formation. The key participants in the financing process have been identified, including the government, the Ministry of Education and Science of Ukraine, the Ministry of Communities and Territories Development of Ukraine, local budgets, educational institution founders, international partners, and student representatives. Directions for improving the financing mechanism of secondary education in Ukraine have been proposed, including the implementation of participatory budgeting, improvement of the verified accounting of teachers and students in the SHC “AICEM”, and the use of the franchising mechanism. The main approaches to participatory budgeting in educational institutions have been identified, covering various options for power distribution, participant engagement, and project implementation. Key stages of implementing the franchising mechanism in secondary education have been proposed as a means of enhancing its quality and efficiency.