Financial support for the implementation of state policy in the field of culture in the context of decentralization

Abstract

The scientific paper examines the components of financial security in the field of culture which are generally classified into state and private ones. The structure of state and local budget expenses spent on culture and art in 2012-2019 is analyzed.

Within the current model the funding of a cultural institution is not determined by its efficiency, and the major part of the funds is spent on salaries of employees of the institution regarding the work time, not taking into consideration the quantity and quality of cultural services provided by them. The average salary in the whole field of culture is actually 28% lower than the average salary in the country per full-time employee, which leads to an outflow of staff, the impossibility to involve new, experienced specialists able to create an appropriate competitive product. Thereby it is proved that the system of provision of public cultural services requires a radical change in the funding mechanism which could increase the efficiency of the budget funds, and direct resources to meet public cultural needs guaranteed by the Constitution of Ukraine. Providing high-quality and accessible services to the population, including cultural ones, is one of the tasks of the decentralization reform.

Taking into consideration the fact that the cultural sector around the world is built on a combination of budgetary and extrabudgetary funding, it was found out that an important and universal mechanism of investment policy that consolidates the financial, organizational and managerial capacity of private and public sectors is a public-private partnership which is an effective and efficient mechanism for attracting not only extra-budgetary funds, but also highly qualified personnel to perform strategic tasks of socio-economic development in conditions of budget funding deficit. The introduction of public-private partnership in the field of culture will attract financial resources for investment projects, restoration of cultural heritage sites, reconstruction and modernization of cinemas, theaters, libraries and clubs, the creation of new cultural space.