Financial innovation in China#39;s higher education funding model.docVIP

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Financial innovation in China#39;s higher education funding model.doc

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FinancialinnovationinChina

Financial innovation in China#39;s higher education funding model Summary: financial provisions are the main source of funding for our colleges and universities, due to the limited capacity of China’s financial system, as well as funding, there are many shortcomings, leading to insufficient supply of university funds in general, the use of funds and inefficient. Therefore, China should improve the budget management system and financial grants, the development of policies to encourage diversification of university funding. Keywords: higher education financial allocation of Higher education funding model, the financial problems The limited capacity of government finances has led to insufficient supply of university funds in general. GNP spending on education in developed countries usually accounts for 5% -7%, many developing countries, education spending usually accounts for about GNP4%. China from the 20th century, 70’s to 90’s, an annual GNP that year the proportion of expenditure on education accounted for only about 2%. If the per capita spending on education calculation, the ratio even lower in 2003, for example, despite the Government’s total investment in education increased over the previous year, but the budget spending on education accounted for the proportion of financial expenditure and the state education budget in GDP, proportion than the previous year decreased by 0.08 and 0.04 percentage points, 17 provincial governments did not meet, “Education Law” investment in education under the growth requirements. Specific to higher education, the funding of higher education, about education, the total financial input of about 20% is also low. These direct result of China’s most inadequate funding of Higher Education. Figure 1. Although our 2005 revenue more than 3 trillion yuan, but the overall levels of government financial resources is more intense. Difficult for the government substantially increase the number of college financial allocat