Rural Compulsory Education And The System Reform Of Government Finance

With the present compulsory education administrative system of local governments taking charge, lauching education in grades levels,relying mainly on county level and the actual tax-separating system, the rural compulsory education has made a rapid progress. However, we also have to face several serious problems, such as inadequate total input on education, inefficient allocation of the expenditure on education and the inequality between regions, especially between urban and rural.This paper thinks there are many factors which may cause these problems, and the reasons due to the tax-separating system can be as follows: the inadequate total input by the state finance on rural compulsory education, the unreasonable internal structure of the fiscal expenditure on education, the fiscal imbalance between regions and fiscal transfer payments on compulsory education not doing its best.Thus, the responsibilities of governments of all levels on compulsory education is expected to be identified. The government should increase the ratio of fiscal education budget to GDP and restructure the fiscal expenditure on education, thus increasing the fiscal supply of compulsory education expense. At the same time, the revenue administrative system should be innovated by implementing the revenue system of provinces taking charge of counties, enhancing counties' finance and improving the ability of governments at county level to pay compulsory education expenditure. Furthermore, the central government, as well as governments at the provincial level, should increase the supply of the expenditure on compulsory education which can be implemented through fiscal transfer payment.