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The Research on Achieving Balanced Development of Higher Education under the Fiscal Decentralization

Author: LiuYunJia
Tutor: WuHaiQuan
School: Changsha University of Science and Technology
Course: Educational Economy and Management
Keywords: Fiscal Decentralization Higher education Education equality
CLC: G647
Type: Master's thesis
Year: 2011
Downloads: 13
Quote: 0
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The system of fiscal decentralization in China has been established through dividing taxes system reform in the year of 1994. Under the influence of fiscal decentralization, the central and local governments provide education expenditures together according to the higher education system and subordinate relationship. The central government is responsible for the universities attached to ministries and commissions of the CPC Central Committee and key professional schools, and the local government is responsible for the local universities. Though carrying out the fiscal decentralization reform in higher education has mobilized the initiatives of local government, some negative effects rise at the same time.The basic ideas are as follows: firstly, the thesis introduced the research background, significance, method, definition, innovation, drawbacks and theoretical basis; secondly, the characteristics of decentralization, relative centralization and centralization of the higher education financing system around the world have been introduced. On this basis, from the perspective of the fiscal decentralization and the differences between inter-provincial student educational expenditures per capita and higher education development scale, the thesis analyzed the current situation and the main reasons regarding out-of-balance in inter-provincial higher education development. Finally, the benchmarks of evaluation and suggestions have been proposed directing the problems of out-of-balance in inter-provincial higher education development.Conclusions are as follows according the research, the per student expenditure on higher education shows a“central collapse”under the impact of fiscal decentralization reform; the situation of funding imbalance in higher education between the provinces is getting worse; and the level of local economic development, the absence of fiscal transfers, the spillover of higher education and the incentive system of the local government are the main reasons resulting in the imbalance. Therefore, the government should spare their efforts to strengthen the responsibility of governments, strengthen the input in underdeveloped regions such as central and western regions, issue legislation and regulation on higher education investment, provide support to schools which is in poor conditions, initiate new preferential tax policies, alter local government performance models, ensuring the development of inter-provincial higher education and realizing the goal of educational equity.

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