FINANCING EDUCATION IN UKRAINE: REALITIES IN THE CONTEXT OF WAR AND PROSPECTS FOR POST-WAR RECONSTRUCTION

Abstract

The article provides a comprehensive analysis of education funding in Ukraine in 2020-2024, which has revealed the main trends, problems, and prospects for the development of the sector in the context of war and future post-war recovery. Based on statistical data, the dynamics of education expenditures in general, their share in the structure of the consolidated state budget, as well as changes in funding by level are analyzed. The results show significant variability in indicators: after an increase in funding in 2021, there was a significant reduction in 2022 due to military actions, the redistribution of state resources for defense needs, and a decline in economic activity. Starting in 2023, there has been a gradual stabilization of budgetary processes and a partial recovery of education spending, although its share in total budget expenditures remains lower than in the pre-war period. An important result of the analysis was the identification of structural changes in the education financing system. Local budgets play a leading role, providing more than 80% of all expenditures, which demonstrates the real effect of decentralization reform. The largest amounts of funding are consistently directed towards general secondary education, while higher education shows a trend towards a gradual reduction in funding, and the pre-school sector towards a slow recovery. These changes are due to both demographic factors and the priority of providing basic education in a state of martial law. An analysis of the expenditure structure revealed an increase in the share of funding for other educational activities, including security, digital, and socio-psychological components, which have become relevant as a result of the war. The key problems of the education financing system have been identified, including limited public resources, uneven distribution of funds between regions, declining investment in the material and technical base of institutions, brain drain, and growing dependence on international aid. Under the influence of military challenges, the education system requires new approaches to the formation of financial policy based on efficiency, transparency, and a focus on results. In this context, directions for improving financing mechanisms have been proposed: strengthening the financial autonomy of communities, involving the private sector, creating partnership programs, modernizing digital infrastructure, and developing long-term strategies for human capital development.