Regional Effect Differences Of Fiscal Decentralization On The Quality Of Public Education Supply

Fiscal decentralization is a global trend. In the context of improving economy, countries are more inclined to devolve financial empowerment to local governments. Traditional decentralization theory suggests that fiscal decentralization can be an effective incentive to improve its efficiency in terms of public service delivery. However, due to differences in each country's political, economic and social system, in practice, it is not the same for all countries in affecting the results of fiscal decentralization on public service delivery. In our country, the Tax Reform in 1994 improved the central financial authority and delegated the most of responsibilities to the local governments, which led to the less expenditure responsibilities on central government relative to local governments, and greater expenditure responsibilities with respect to its financial income. So, local governments reduced the supply of public services, such as public education. At present, Chinese scholars put more attention on the impact of public education supply, but little on the impact of fiscal decentralization on regional differences in public education. In view of this, this paper analyzed the regional differences in fiscal decentralization on the impact on public education supply.Firstly, this text uses theoretical analysis on reasons of fiscal decentralization further widening regional differences in public education, due to the promotion of local officials system in China and the "contraction for budget" education financial system, making local government be more inclined to increase expenditure on infrastructure, but they ignore the public education that can bring enhance the overall efficiency.Secondly, based on existing research, the text summarizes the factors of fiscal decentralization on the supply of public education, builds a mathematical model under the situation of the fiscal centralization and decentralization to deduce the mechanism of public education supply. Through analysis, the text finds that the system inclined to fiscal decentralization would make public services spending decline.Thirdly, based on the 31 provinces' panel data of 2003-2014, empirical test of the fiscal decentralization on regional differences in the supply of public education would be done. The results show that fiscal decentralization supply level for public education has a negative impact, and the impact of the central regional largest.Finally, on the basis of theoretical analysis and empirical testing, the paper from optimizing local officials assessment system, improving the strength of the central government public service supply, priority to improve the non-higher education expenditure on education level and management ability, adjusting the tendency of policies to leave more talents for the Midwest, increasing the precision of directional transfer payment proposed to improve the supply of public education, to narrow regional differences in the supply of public education countermeasures.