The fiscal powers and expenditure responsibilities of China's central and local governments in the field of education has been defined in a reform plan issued by the General Office of the State Council.
The document calls for expedited efforts to establish a systematic, well-conceived, clear and efficient mode for the division of powers and expenditure responsibilities in the field of education between the central government and local governments to push for equitable access to basic public services in education.
The plan stresses that the central government's powers of making decisions on education expenditure should be clearly defined, while local governments should fulfill their responsibilities in terms of education expenditure.
In general, cental government and local governments share their fiscal powers regarding nine-year compulsory education, financial assistance to students and non-compulsory education.
Recurrent spending on day-to-day school running and school building safety in the field of compulsory education are jointly borne by central and local governments in proportion, according to the plan.
Local governments are supposed to arrange funds for special projects or tasks during compulsory education stages, which will also be supported by the central government via fiscal transfer payment.
