FINANCIAL AUTONOMY OF UNIVERSITIES: EXPERIENCE OF GEORGIA

Abstract

The analysis of legislative support of higher education and strategic documents of education and science development of Georgia is carried out. As a result, the strategic tasks of further development of higher education in Georgia are clarified. They are: modernizing and aligning higher education programs with labour market needs in order to improve the quality and learning outcomes to stimulate personal development and employability. It is necessary to develop a stronger development-oriented and results-based quality assurance system; strengthen the research base of universities and the links between teaching and research to make knowledge creation, transfer, innovation and technology as integral parts of study programs; modernize the research infrastructure; improve access to good quality education, particularly for students with financial problems and for students with special needs through scholarships (merit-based, need-based) and student loans; develop public funding with incentives for implementing above-mentioned objectives and for acknowledging for relative cost differences between various types of study programs or institutions. Sources of funding for higher education institutions of Georgia are revealed. They are: tuition fees which are covered by the state study grant and state Master’s study grant (only with regard to an accredited higher education programme); funds received through private grants, contributions; research grants awarded by the state on the basis of competition; programme financing allocated by the ministries of the relevant fields. The main mechanisms of state funding, in particular state grants (vouchers) for students and funding of educational places according to priority educational programs are determined. Mechanisms of students’ financial support, such as merit-based grants, needs-based grants, and free places for learning in priority areas are provided. The level of financial autonomy of universities is analysed.