The Choice Of Our Compulsory Education Financial System

By analyzing the traits of compulsory education and doing in-depth study on the current problems of compulsory education system in China, I explored in this paper the profound reasons causing those problems and put forward in the end relevant proposals concerning the financial system of Chinese compulsory education.Starting from the definition of public asset at first, the attribute of compulsory education is discussed. Due to the institutional arrangement and its own characteristics, compulsory education should be provided as certain sheer public asset, of which the responsibility should be assumed mainly by both central and local governments and the final transfer responsibility by the central government and governments of higher class, like state governmentIn the second part, great emphasis is attached to the two major problems existing in the current domestic compulsory education -the gross insufficiency and the regional disproportion. After illustrating the capital sufficiency principle of compulsory education, the concrete embodiment of the gross insufficiency in the compulsory education and the impact of the revenue reform on the compulsory education are studied, then the general outlay gap of compulsory education is estimated andcounted in two ways; as probing the regional disproportion, the diversities between urban and rural areas, diversities of the provinces from within and without, and diversities caused by budgetary investment are all examined with great concern.In the third part, the unreasonableness of the financing structure of Chinese compulsory education system, that of the education investment structure and the inefficiency of the transfer system are pointed out to be the profound reasons for the problems mentioned above. The inefficiency of the transfer system is deemed as the direct and fundamental one among the three, so the deficiencies of the financial transfer system of compulsory education are finally unveiled based on particular analysis on the dimensions and effect of the current financial transfer system of the compulsory education.At last, relevant suggestions about the choice of our compulsory education financial system are given out, in which restructuring the present financial transfer system is the kernel and obtaining more educational resources is the necessary precondition. It would be effective to issue new education bonds, raise the percentage of educational funds in the financial disbursement and simultaneity increase the proportion of the compulsory educational funds in the total educational payout in order to collect more resources for compulsory education; It would be an efficient mode of financial transfer if making sure the local standard expenses and income of compulsory education and furtherly figuring out its financial blind spots which can then be made up by central and provincial governments adopting way of special transfer according to the percentages respectively.The originalities of this paper can be generalized as: first, the essence of compulsory education is defined as sheer public asset; second, the influence of capital sufficiency principal of compulsory education on efficiency and equity is profoundly analyzed for which the reasons are furthurly explored; thirdly, the feasibility of collectingresources for compulsory education by issuing educational bonds is analyzed and proved; fourthly, proper amendment and supplement are proposed to improve the present mode of compulsory education financial transfer system brought forth by the acadamia.