FEATURES OF RESULT BASED FINANCING HIGHER EDUCATION

The key role of the education system in the formation of a knowledge society is raising the issue ofimproving its financing. In the face of new challenges and aggravation of global competition, the mechanism forfinancing the higher education system is being transformed. The need to increase funding is manifested in expandingfinancial sources and improving the management of various financial flows. Increasing the effectiveness of publicfunding is becoming an important issue, which remains the main source of financial revenues for institutions ofhigher education in countries of the world. A promising practice in the world is the use of funding based on theresults of activity, which is becoming more widespread in various areas of economic activity. The purpose of thisarticle is to study the current world-wide practice of applying results-based financing of higher education anddefining promising directions for its implementation in Ukraine. The essence and features of RBF - Result BasedFinancing (RBF) method, including in the system of higher education, are revealed. The existing approaches tofinancing higher education institutions in the world based on results are systematized, the main criteria for theirdefinition are identified: on the basis of inputs, process, output, output. The world practice of using higher educationinstitutions financing based on the results, positive and negative consequences of its implementation is highlightedand summarized. The necessity of using RBF funding in the system of native education is proved, the maindirections and areas of its use are determined. The application of a two-tier model of financing higher educationinstitutions in Ukraine is proposed, which combines the traditional cost-oriented approach and funding based on theresults of the activity.