City And County Fiscal Decentralization In The Local Compulsory Education Expenditure And The Impact Of Differences

China is a large country with five levels of complex government,the current compulsory education financial system of which has not clearly defined the responsibility of government expenditure,adopting the model of county-based hierarchical management.The fiscal decentralization system is not perfect,which causes the insufficiency in supply of the current compulsory education and the uneven distribution.At present,the research in our country on the effect exerted by fiscal decentralization on the local government's compulsory education financial behavior is far from enough.Results differ widely since the selection of different indicators in the existing research has been chosen.In the limited study that could be achieved,fiscal decentralization index of central and provincial government has been applied by the vast majority.But compulsory education is mainly supplied by the level of county and township,the conduction of decentralization of central and provincial degree will inevitably be biased.Of course,there are few articles that focus on the county government,the main responsibility,but directly comparing the county's revenue and expenditure to that of the province marks the ignorance the role of the city level government in the financial relationship and supply of compulsory education.To this end,based on the 2009 National County(city)level data,this paper applies multi layer linear method,selecting six fiscal decentralization indicators from different perspectives to launch the empirical study on equilibrium effect exerted by the city-county fiscal decentralization on fiscal expenditure on local compulsory education of country level,and that of urban and rural areas.In the selection of the index,based on analysis of income and expenditure,this paper performs the measurement of fiscal decentralization from the perspective of autonomy.Considering that the government funds and the budget management is not normative enough,more detailed division on fiscal decentralization from the different caliber has been fulfilled.Different indicators present different measurements on the fiscal decentralization in the level of city and country from different perspective,achieving a more accurate and comprehensive empirical conclusion of the impact of fiscal decentralization on China's compulsory education:First of all,analysis from the caliber of the fiscal revenue and expenditure reveals that current financial and expenditure responsibilities do not match each other,which leads to a serious shortage in compulsory education our country in terms of finance expenditure level,the increase of city-county fiscal decentralization reducing local compulsory education financial input.Secondly,in the face of the income and expense gap caused by the reform of tax sharing system that financial resources concentrate upwards while powers of authority constantly decentralized downwards,local governments rely more on transfer payment of higher levels of government.Therefore,whether it is general decentralization index or full aperture decentralization index,the negative shadow cast by expenditure decentralization on education exceeds that of the income decentralization.In addition,the current financial system inevitably leads to a shortage in local funds,local governments compete for resources through non-budget financing,which gives rise to a unscientific emphasis on local interests as well as regional protectionism,and it is not conducive to the fair and effective allocation of resources in all areas,the city-county fiscal decentralization having widened the gap in compulsory education of different regions.Based on the above conclusions,this paper puts forward some suggestions for the development of compulsory education in China under the framework of fiscal decentralization,including reasonable division on responsibilities of financial expenditure responsibilities,strengthening the responsibility and autonomy in county government management,improving the transfer payment system,and giving full play to the role of incentive mechanism,regulating the behavior of local government,enhancing the management of non-budgetary funds,etc.