FEATURES OF FINANCING HIGHER EDUCATION UNDER THE CONDITIONS OF WAR

Abstract

The article examines the system of higher education financing as a key factor in ensuring the quality, accessibility, and long-term competitiveness of Ukraine’s higher education sector in the context of European integration and socio-economic transformations. It provides a detailed analysis of the current state of public funding for higher education institutions (HEIs), with attention to quantitative indicators such as per-student spending, sectoral budget allocations, and funding dynamics, as well as qualitative aspects including efficiency, transparency, and orientation toward results. The structure of public expenditures, the proportion of education within the overall state budget, and the mechanisms for distributing funds among HEIs are explored. Emphasis is placed on the fairness and transparency of allocations across regions and different types of institutions, revealing systemic financial imbalances and inefficiencies that hinder the development of an equitable educational environment. In addition to traditional public funding, the article assesses the role and potential of alternative income sources such as international and domestic grants, tuition fees, endowment funds, public-private partnerships, and support from international donors. The existing legal and institutional frameworks that govern financial flows within the higher education sector are reviewed, underlining the importance of income diversification for financial sustainability. The impact of the full-scale war is highlighted, including physical destruction of infrastructure, decreased investment in the sector, and chronically low academic salaries, all of which severely affect institutional resilience, education quality, and the ability to retain and motivate qualified personnel. It is emphasized that urgent reform is needed—transitioning from input-based to performance- and outcome-oriented financing models that foster academic excellence, innovation, accountability, and institutional efficiency. Expanding the financial and managerial autonomy of HEIs is presented as a strategic step aligned with European standards and the principles of the Bologna Process.