The Impact of Migration on Forecasting Budget Expenditures on Education: The Sustainability Context

Abstract

This paper examines the impact of migration and changes in the population’s age structure on government expenditures on education in Ukraine. The cohort method, considering a group of people attending four main types of education, namely, preschool, general secondary, vocational and technical, and higher education, is used to analyze and forecast government expenditures in the medium and long term. The study results show that migration significantly impacts government budget expenditures on education, with the most significant impact being seen on preschool education, followed by higher education, while the impact on general secondary and vocational education is minimal. The number of people receiving education in one of the four main types of institutions funded by state and local budgets was predicted to gradually decrease during the forecast period, except for secondary and vocational education. The overall volume of state expenditures would gradually decrease, both in absolute terms and as a percentage of GDP. Improving educational processes and the quality of budget spending should become an area for state regulation to ensure quality education in all funding conditions. This research’s leading theoretical and practical results show the efficiency of this methodology for analyzing and forecasting budget expenditures on education. They can be helpful in the short and medium terms, considering all potential changes in demographic indicators regarding the population.