Fiscal Analysis And Policy Options Which Support The Further Development Of China's Compulsory Education

Education is the cornerstone of national rejuvenation and the founding of a country. Compulsory education is a positive driver of social development. Moreover, it is an important means for a country to enhance the quality of citizens, promote national culture, communicate technology and cultural foundations of human knowledge and enhance the international competitiveness of the country. The healthy development of compulsory education must have a strong fiscal policy as a support. China is in the process of building a moderately prosperous and harmonious society. Under this situation, we need further research of China's fiscal policy which supports the development of compulsory education, making compulsory education promote a better play to the important role of social progress. In this paper, public goods, public choice and public finance theories are used to make financial analysis of China's compulsory education in the different stages of development. At the same time, this paper learns from the successful experience of foreign education, and analyzes the financial problems of China's Compulsory Education of this stage, and finally puts forward fiscal policy recommendations on how to further support the development of China's compulsory education.First, the article starts the research at the basic theory of financial research of compulsory education, using public goods and public choice theory to define the attributes of compulsory education products. The author thinks that compulsory education is a pure public goods and its services should be undertaken by the government. There are three basic tasks for the government to provide compulsory education. The first is supporting adequate supply of funds for compulsory education. The second is making a fair allocation of resources of compulsory education. And the third is making efficient use of resources of compulsory education.Then the article analyzes the process of the financial system of China's compulsory education. The author believes that the financial system of compulsory education in China has gone through four stages of development. The first stage is the unified finance and the classified management of compulsory education. The second stage is classified management and appointing local leaders. The third stage is county-based, classified management and appointing local leaders. The last stage is that the country takes overall responsibility for the free compulsory education. At each stage of development, the paper focuses on the relationship between the financial system of compulsory education and the national financial system, and the characteristics of the financial system of compulsory education. Then the article pays attention to the finance of China's compulsory education on the current stage, pointing out the lack of public investment, the getting down of the center of investment, the lack of the standards of transfer payment system, the inefficient expenditure and the debt problem of "the spread of nine-year compulsory education" are the main problems of the current compulsory education finance.In order to learn from the successful experience of foreign education, the article also analyzes the foreign financial models of compulsory education, and makes comparison of the financial system of compulsory education of countries which are in different levels of economic development. On the basis of comparison and analysis, the author found the following revelation:First, the fiscal system determines the form of the burden of financial resources of compulsory education. Second, public investment constitutes the absolute financial resources of national compulsory education. Third, the financial investment subjects of compulsory education gradually move up. Forth, establish and improve the standards of financial transfer payment system. Fifth, set the equitable and balanced development of compulsory education as the main objective.At last, the paper gives special financial policy recommendations which support the further development of China's compulsory education. Furthermore, the recommendations are given under the institutional framework for public finance. There are mainly six recommendations. First, we should adjust and optimize the structure of fiscal expenditure. And the compulsory education input should also be increased. Second, the government's financial burden-sharing at all levels are supposed to be further clarified. Third, fiscal transfer payment system which promotes equitable development of compulsory education should be established. Forth, we should strengthen financial management and establish financial performance evaluation mechanism of compulsory education. Fifth, it is supposed to broaden the financing channels for compulsory education. Last but not least, we should resolve compulsory education's debt of "the spread of nine-year compulsory education".