The contribution of the Transcarpathian Hungarian College of Higher Education to the budgetary stability of the Berehiv Urban Territorial Community

The role of the Ferenc Rakotsi II Transcarpathian Hungarian College of Higher Education (FRII THCHE, or the Institute) at the regional level is not limited to the performance of educational, cultural and social functions, because it also plays an important budget-forming function from the point of view of economic development through the payment of taxes and fees to the budget of the Berehiv Urban Territorial Community (UTC). In addition, the institute provides scholarships to students, creates jobs and provides wages to employees.

Over the past 5 years, the amount of taxes and fees paid by the Institute to the state and local budgets has grown by an average of 17.6% year-on-year and totaled UAH 273.7 million. The Institute, as one of the largest taxpayers, plays an important role in filling the local budget. During this five-year period, taxes paid by the institute provided 12% of all tax revenues of the local budget. The personal income tax (PIT) paid by the institute is 18% of the local budget revenues from this type of tax, which confirms the significant budget-forming role of the Institute in the Berehiv community.

In the total amount of taxes and fees paid by the FRII THCHE, the largest share falls on personal income tax (46%) and the single social contribution (47%). The latter is fully sent to the state budget and does not remain in place. At the same time, 60% of personal income tax remains at the level of the local budget. Deducted amounts of this tax make up 91.4% of all obligatory payments paid by the Institute to the budget of the Berehivska UTC. The distribution of taxes and fees paid by the Institute by budget levels is presented in the figure.

Fig. 1. Distribution of taxes and fees paid by the Ferenc Rakotsi II Transcarpathian Hungarian College of Higher Education by budget levels in 2018-2022
Fig. 1. Distribution of taxes and fees paid by the Ferenc Rakotsi II Transcarpathian Hungarian College of Higher Education by budget levels in 2018-2022

The Institute, as an educational institution, in accordance with its mission, considers it necessary to emphasize the support of educational institutions at the expense of taxes and fees paid by it. Mandatory payments transferred to the budget by the institution made it possible to finance expenses for the maintenance of preschool institutions by 62% in 2020. As a result of the creation of the Berehiv UTC, budget expenditures have increased significantly due to the addition of new maintained institutions. However, the taxes and fees paid by the Institute allow to finance the work of these institutions by 34%.

It is worth noting that mandatory payments paid by the Institute have a significant impact on the financing of local preschools and other educational institutions. It is obvious that the role of the Institute as a center for providing training of quality pedagogical and professional personnel, as a cultural center is not exhausted and has an important socio-economic impact on the development of the community’s economy. In this case, the functioning of the Transcarpathian Hungarian Institute, as the largest taxpayer for the benefit of the Berehiv UTC, makes a significant contribution to the filling of the state budget, which in such difficult times is important for ensuring the budgetary stability of the state.

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