Page 22 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 1, 2021, pp. 4-25

Chart No 3: Flexible budgeting process and Phmax formula

VARIABLES TAKEN INTO ACCOUNT IN Phmax FORMULA

the Phmax formula allows to take into account the groups
STUDENTS and grades of particular educational establishments.
The calculation is adjusted for each field of education and
organisation of the classes

the Phmax enables to cover and adjust different components of
TEACHERS the salary grades and other components

the Phmax eliminates the perpetuation of historical spending
HISTORY
patterns and advance changes

MISSING VARIABLES
On the contrary the

the calculation method cannot replace strategic planning
FUTURE understanding the real needs and predict the long-term trends

NEEDS FROM THE
REGIONAL POINT coordination, reshaping the education programmes, policy
setting
OF VIEW

Source: own processing

In the case of Phmax formula funding, the variables are able to ensure the local
disparities in case of students, teachers and the historical funding data but cannot
reflect other local conditions: the demographic previews, labour market situation or
follow the overall education strategic policy.

6.3. Results of the main objectives of the study

Follow-up the comparison and analysis the summary of the results will focus on the
hypothesis set for the present research.

The analysis and comparison based on the own calculation and data provided by MEYS
and Regional Education Department show the redistribution in favour of smaller
schools that previously suffered from unfavourable demographic development. These
changes demonstrated mainly in case of the schools that suffered from the decline of
their students due to unfavourable demographic development.

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