The article considers the main framework and models of financing vocational education and training (hereinafter – VET). The analysis of the best practices of financing VET is carried out, the main tasks and challenges to which the chosen model of financing should respond are defined. It is established that depending on the main source of funds, there are three groups of models of financing VET: models that use mainly national (central) budget funds, models that use mainly local budget funds, models that use a uniform combination of public and private funds. The allocation of public funds can be based on criteria set by the government in each situation, determined by the financing formula, or on a competitive market basis. In order to effectively involve employers in the process of providing VET, a dual system of training is gaining more and more development, in which the theoretical part of training based on vocational education institutions is financed by the state, and the practical part is financed directly by employers. The best practices show that an adequate model of financing VET can improve the quality of educational services provided. Requirements for receiving funds create incentives for educational institutions to improve the quality of services provided. In general, in the OECD countries, funding is provided per student from the state budget and additional targeted direct funding from the local budget. The main requirement for receiving funds from the state is the efficiency of their use, which in this case is measured as a high level of training of as many applicants for educational services. Our analysis has shown that successful financing models must be based on consistent principles, be transparent and simple, as complex funding frameworks lead to a loss of openness and distortions in the allocation of funds.
FINANCING VOCATIONAL EDUCATION AND TRAINING: MODELS AND BEST PRACTICES