An Economic Analysis Of Imbalance In Chinese Educational Expenditure

Since 1978, great changes have been occurring in our educational expenditure system. Most fundamental of all is the transformation of basic-education expenditure system, which has been changing to several channels including nation, community, school, collectivity and individual compared with the single national channel before. After 20-year's brew and transformation, the financial source of basic-education has been confirmed by The Compulsory-education Law and The Compulsory-education Implementing Detailed-rules. There are two basic characters of the Compulsory-education expenditure system. One is responsibility on government is low while that on non-government is high. The other is responsibility on higher level government is low while that on lower level government is high. This paper analyzes the sequent result of this policy, and puts forward solutions to settle the problems.This paper includes three parts below:Part one, summary of the transformation in education expenditure system.Part two, analysis of the differences in liberal education's expenditure from 1988 to 1996. Conclusions are drawn as following: 1. There are salient differences in liberal education's expenditure both inside and among provinces in our country. 2.These differences have been enlarging. The author thinks it'snot beneficial for development of Compulsory education, and suggests that it's necessary to establish demand model of compulsory-education expenditure based on units of counties, and to confirm the transfer-payment proportion of higher level governments according to their financial resource.Part three, analysis of the imbalance of educational investment-income in our country. Through comparing the level of educational investment which is evaluated by the number of students at school with the level of educational income which is evaluated by population of high school and higher educational level in every 10 thousand persons, the author draws following conclusions: 1.There are salient differences in educational income at equal level of educational investment. 2. Some provinces which pay more for education get fewer, while the other which pay fewer get more. These increase imbalance of economical development among provinces. The author suggests establishing a system that disadvantageous provinces get benefit compensation from the advantageous ones so as to further their education development.