<p><span style="font-family:Verdana,Geneva,sans-serif">Nowadays, one of the most pressing issues across the world is the efficient use of budgetary funds, ensuring their targeted spending, optimizing public expenditure and attracting private investment into national economies. This article provides a comparative analysis of studies by various local and foreign scientists on the essence of financing models for higher educational institutions in the republic, their specifics, and a mechanism for effective financing of the education system. As well as, it presents proposals and recommendations on procedures for financing higher education institutions in the country and expanding extrabudgetary financing of the higher education system.</span></p>