FINANCIAL AND ECONOMIC MECHANISM OF PRESCHOOL EDUCATION INSTITUTION

Abstract

The article analyzes various scientific problems related to the study of definitions of the financial mechanism of preschool education. Based on the analysis of the scientific literature, the content of the essence of the financial and economic mechanism of the preschool institution is highlighted. The author analyzes different approaches to the definition of «financing», «mechanism», «financial mechanism», «economic mechanism». It was found that the financial mechanism considers a set of conditions, forms and methods of creation, distribution and use of funds by institutions and education authorities in order to ensure a favorable position for the development of the education system. Understanding of the financial and economic mechanism aims to ensure the systematic receipt and efficient use of financial resources, compliance with settlement and credit discipline, achieving a rational ratio of own and borrowed funds, financial stability in order to effectively operate the institution, and the economic mechanism means a certain way of organization and functioning of the economic life of the country, industry, enterprise, and hence the educational institution. The economic mechanism can be defined as a way of managing, a set of forms, methods and tools of management. It is investigated that a wellimproved planning system and budget allocation technique are needed for effective financing of preschool institutions. It is determined that the forms of state financing of preschool education institutions are: direct financing on the basis of estimated cost or standards; additional allocations for individual programs, activities; grants or subventions to equalize disparities between territories; funding of specific programs. Based on his own considerations and scientific literature, the author substantiates that the financial and economic mechanism is complex and forms the unity of such interconnected elements (subsystems) as economic, legal and organizational. It is studied that the financial and economic mechanism is complex and forms the unity of such interconnected elements (subsystems) as economic, legal and organizational.