DIVERSIFICATION OF FUNDING SOURCES FOR VOCATIONAL AND TECHNICAL EDUCATION INSTITUTIONS
Abstract
The issue of diversifying funding sources for vocational and technical education institutions is particularly relevant in today's rapidly changing economic environment. Ensuring financial sustainability of such institutions is critical for developing a skilled workforce and supporting national economic growth. This article provides a comprehensive analysis of the financing systems for vocational education and training (VET) institutions in Ukraine and leading European Union countries. It explores the theoretical foundations, essence, methods, and specific features of financial support for skilled worker training in the modern economic context. Key legislative and regulatory aspects governing financial flows in this sector are examined. The structure and dynamics of funding sources for VET institutions in Ukraine during the period 2020-2024 are analyzed in detail. Based on statistical data, major trends are identified, including dependence on budget allocations, the role of local budgets after decentralization, and the share of other sources (own revenues, employer contributions). A forecast for 2025–2028 was constructed, which made it possible to identify a potential increase in the volume of financing for vocational education institutions, however, the pace depends on fiscal regulation, martial law conditions, and the ability to attract alternative financial resources. Data visualization is presented to clearly illustrate the structure of financial inflows. Significant attention is paid to studying the experience of financing VET institutions in selected EU countries. A comparative analysis of funding models is conducted, including dual systems, state grants, business participation, and regional funds. Common features and differences in European approaches compared to Ukrainian practices are identified. The article identifies key challenges in the VET financing system in Ukraine. It also proposes recommendations for its improvement, taking into account positive European experience, particularly regarding the diversification of funding sources and the strengthening of cooperation with employers, especially in the context of countering the risks associated with martial law in Ukraine.
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