Economic Analysis: Theory and Practice
 

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Alternative sources of the education system financing

Vol. 18, Iss. 1, JANUARY 2019

Received: 16 July 2018

Received in revised form: 30 August 2018

Accepted: 22 November 2018

Available online: 29 January 2019

Subject Heading: ANALYSIS OF REFORM OF EDUCATION

JEL Classification: H41, H52, I22, I25

Pages: 136–150

https://doi.org/10.24891/ea.18.1.136

Rukina S.N. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation
ya.svetlana-41@ya.ru

ORCID id: not available

Takmazyan A.S. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation
aida.takmazyan@yandex.ru

ORCID id: not available

Samoilova K.N. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation
karina.samoylova2015@mail.ru

ORCID id: not available

Gerasimova K.A. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation
h_kristina@bk.ru

ORCID id: not available

Subject The article deals with searching for extra-budgetary sources of financing the education system.
Objectives The purpose of the study is to justify the possibility of using extra-budgetary sources, which are formed within the initiative budgeting and public-private partnership, to finance the education system in addition to budget funds.
Methods The study employs the systems approach in combination with general scientific methods cognition, like the formal logical analysis, synthesis, and comparison.
Results We underpin the practicability of using two alternative sources of education system financing. The first is initiative payments of citizens and entrepreneurial structures within the framework of initiative budgeting. The payments are directed to implement pilot educational projects on matters that are relevant for the residents of municipalities. The second is financial resources of business structures within the public-private partnership on the basis of a combination of different forms of interaction between the State, the business and an educational institution. The priority of the interaction should be a creation of innovative infrastructure of universities for development and introduction of innovations.
Conclusions The mechanisms of initiative budgeting and public-private partnership are demanded by the business, the population and the State. The attracted private investments really work to solve problems existing in the Russian education. The macroeconomic stability, investment climate improvement, long-term risk reduction, regulatory and legal framework and institutional environment improvement will ensure further development of initiative budgeting and public-private partnership.

Keywords: education system, digital economy, budget spending, initiative budgeting, public-private partnership

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