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EDUCATION IN CHINA

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Chapter 1 – Organisation and management of education in China<br />

FIGURE 1.4 SHARE OF EXPENDITURE ON <strong>EDUCATION</strong> BY SOURCE OF FUND<strong>IN</strong>G (2014)<br />

2.28%<br />

0.24% 16.54%<br />

0.40%<br />

Government appropriation for education<br />

Funds invested by private school founders<br />

80.54%<br />

Donations and fundraising<br />

Institutional income<br />

Other funds<br />

Source: National Bureau of Statistics (2014), China Statistical Yearbook, www.stats.gov.cn/tjsj/ndsj/2014/indexeh.htm.<br />

China’s educational appropriations reflect the fact that<br />

education is a national priority. The country has focused<br />

significant resources on improving education quality<br />

and reducing inequalities in recent years. Currently,<br />

the Ministry of Education has set four areas of priority:<br />

1) rural, remote, poor and minority areas; 2) primary<br />

education in rural areas, vocational education and preschool<br />

education; 3) subsidies for students from poor<br />

families; and 4) building a high-quality team of teachers.<br />

China has emphasised the supervision of educational<br />

funds in official documents in recent years. The<br />

government has stated that it aims to develop a more<br />

public and comprehensive supervision system for<br />

education funding. This would consist of a regular and<br />

standardised system for supervision. Such a system<br />

would mandate the supervision of schools and relevant<br />

organisations by education administration departments,<br />

and the monitoring of administration departments<br />

themselves by the public.<br />

Educational administration departments at all levels are<br />

required to strengthen their supervision of schools and<br />

organisations through financial evaluation, internal audit<br />

and special inspections. Subsequently, the inspection<br />

results are to be put into effective use. All administration<br />

departments are expected to link inspection results<br />

to performance appraisals and resource allocations.<br />

In this way, the government hopes to make real use<br />

of the inspection system by building a standardised<br />

management system.<br />

All administration departments are expected to submit<br />

their budgets and final accounts, as well as public<br />

funds and administration expenses, to public scrutiny.<br />

Universities that are directly affiliated with the Ministry<br />

of Education are also required to demonstrate financial<br />

transparency.<br />

Box 1.6 Education funding<br />

The education system in China is funded by a number of<br />

sources. Government appropriations are the major source<br />

of funding. Government appropriations are comprised of<br />

budgetary and non-budgetary funds, of which budgetary<br />

funds are the main component. Budgetary funds, or public<br />

expenditure on education, include funds from both the<br />

education sector and other sectors. Non-budgetary funds<br />

include taxes for education levied by local government,<br />

educational funds from enterprises and other funds that<br />

belong to government appropriations. Additional financial<br />

sources for education include tuition fees, donations and<br />

fundraising.<br />

Other than government appropriation for education,<br />

private organisations and individuals are the principal<br />

sources of funding for schools run by these organisations<br />

or individuals.<br />

Source: National Bureau of Statistics (2014), China Statistical Yearbook, www.stats.gov.cn/tjsj/ndsj/2014/indexeh.htm.<br />

16 – <strong>EDUCATION</strong> <strong>IN</strong> CH<strong>IN</strong>A: A SNAPSHOT © OECD 2016

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