Reflection on the Causes and Countermeasures of Our Education Finance Predicament

One of the important functions of public finance is for government to finance education. In the short run it is very difficult for government to increase its education budget to meet the increasing demand in education. Meanwhile the use of the education funds is inefficient. As a result, we are in an awkward predicament of the coexisting of the insufficient education funds and the inefficient use of the education funds. This is largely attributable to the defects both in the system of education itself and in the external environment of the education finance institution. In order to solve these problems we should not only redefine the range of education finance spending, strengthen the responsibility of the governments at all levels and make the education finance expenditure institutionalized,but also improve the administration of education funds to get better benefit of the funds. Moreover, a law on education input must be passed as soon as possible to set up a legal framework for the education finance spending.