The Origin of the County- Level Compulsory Education Expenditure Shortage from the Perspective of Financial Decentralization in China

Abstract

The result of empirical analysis based on county-level data showed that after therevenue-sharing-schemereform in 1994,the origin of county-level compulsory education expenditure shortage in china is not only question of the money,is mainly insufficiency of county-level expenditure incentives.the reason of this result above is,under unique administration centralization and financial decentralization system in China,for need of their own achievements promote,the county-level government would give priority to arrangement for limited financial resources finance to expanding population to guarantee social stability,to capital construction investment which help promote economic growth,thus has occupied educational outlay.Simultaneously,it was discovered that difference of substitution degree of these two disbursements to county-level compulsory education expenditure of eastern middle and west part of china is obvious.In addition,due to lack of intervention mechanism,based on financial difficulties of counties and townships,the increasing of finance transfer payment simply of higher authority has had negative drive to county-level compulsory education expenditure.