China's Rural Compulsory Education Financial Transfer Payment System's Operational Performance

The transferred-payment system of compulsory education finance as a special decision-making is a fundamental guarantee to solve the problem of the imbalance of compulsory education. However, the existing compulsory education of financial transfer payment system is not even an integral part of the system of compulsory education system and its operation performance is also unsatisfactory. It is invalid both for horizontal and vertical balance, and falls far short of the requirements of promoting inter-regional level of basic public services equal. Besides, uses of the special funds lack of efficiency reflecting shortage of funds in the rural compulsory education transfer payments, diverted, or withheld and so on. By the central authorities in building a new socialist countryside, the central and provincial finance will further increase transfer payments to the rural areas. However, in the face of huge demand in rural areas, financial resources are still limited, therefore, not only increase the financial transfer payment, but also improve its operating performance. This paper fully analyze the performance of the current financial transfer payment of rural compulsory education system in the angle of justice and efficiency guided by a justice efficiency theory, the new institutional economics, education Finance and other relevant theories , and propose a solution to improve its performance.