Study On The Influence Of The Fiscal Decentralization Of China On The Supply Level Of Compulsory Education

Compulsory education is the basis of national rejuvenation,and education equity is important to achieve society fairness.Since entering the new century,China has made a series of major decisions on compulsory education.The supply level of compulsory education has been promoted.The popularity of compulsory education has been improved.And the equalization of public education services has been accelerated.The equal rights of all people have been guaranteed.However,while the development of compulsory education in our country has achieved a series of achievements,there are still problems waiting to be solved.The problems mainly reflected in two aspects:First,the level and quality of compulsory education are not high;Second,the structure of compulsory education development is unbalanced.And there is an imbalance in supply among regions,between urban and rural areas,and between groups.The government is the representative and manager of public interest,and fiscal decentralization is an important financial institutional arrangement.The first generation of fiscal decentralization theory believes that fiscal decentralization is conducive to the provision of public goods by local governments.The Second generation fiscal decentralization theory emphasizes the combination of fiscal decentralization and incentive mechanisms.The fiscal decentralization that has been formed since 1994 in China is different from Western fiscal decentralization.It is a fiscal decentralization system under centralized political power.This system can effectively stimulate and coordinate the actions of government.Different levels of government have different development motives at different stages of development.Incentives and government actions will change as government goals change.Through combing the literature,this article finds that under the economic growth mode of government,local governments have been distorted in terms of political promotion incentives and fiscal revenue incentives.Local governments vigorously developed the economy while ignoring the provision of public goods.Financial decentralization has a negative impact on the provision of public goods such as compulsory education and medical care.Now,China is facing the transition of economy and government changes to service-oriented government.In this context,whether the transformation of government objectives corrects the distortions of local governments and enhances the supply of compulsory education?Under the current fiscal decentralization system,what influence does fiscal decentralization have on the level of supply of compulsory education and inequality between provinces?How can we achieve a balanced development?These issues need further study and give correct answers.Based on the existing research,this paper constructs an analytical framework for the effect of fiscal decentralization on the level of supply of compulsory education.Through factor analysis,a comprehensive evaluation index system for the level of compulsory supply is constructed to analyze the comprehensive scores of compulsory education supply levels in all provinces from 2005 to 2015.The result shows that there is an unequal level of supply of compulsory education between regions.Based on this evaluation,this paper empirically analyzes how fiscal decentralization effect on the overall supply of compulsory education.The empirical result shows that the decentralization of fiscal expenditure has a significant positive effect on the overall supply of compulsory education.Judging from the sub-regional results,the impact of fiscal expenditure decentralization on compulsory education varies across regions.The parameters of the eastern region are significantly positive.It means financial decentralization has a positive effect on the supply of compulsory education.The empirical results in the central and western regions are not significant.This requires continued optimization of the government's behavior under the current fiscal decentralization system.Accelerate the pace of government transformation.Optimize the performance evaluation mechanism of local government.It also needs to make structural adjustments to the existing fiscal decentralization system.In addition,there is a need to improve the transfer payment system with the goal of equalization.