Research On The Influence Of ’New Mechanism’ On Educational Fiscal Expenditure Efficiency In The Western Rural Areas

Rural compulsory education plays a foundational, progressive and overall important role in building a moderately prosperous society in all aspects and building a socialist harmonious society. The Party Central Committee and the State Council have always attached great importance to the development of rural compulsory education, and gradually include the rural compulsory education into the scope of public financial security. The Notice of Deepening the Reform of Mechanism to Ensure Compulsory Education Funding in Rural Area was published by the State council in 2005.The notice put forward four requirements, including consolidating and improving the wage protection of primary and secondary school teachers in rural area, ensuring the operating expenses for public use in the primary and secondary school and so forth. The ’New Mechanism’, starting from rationalize the mechanism,solved the problems of Education funding to a certain extent. The enactment of’New Mechanism’has profound historical and great realistic significance. Based on the theory of public goods, the theory of fiscal expenditure and so on. The paper compared the actual situation of education funding among the eastern,the central and the western China. The paper concluded that the’New Mechanism’was enforced effectively in the western China, according to the result drawing from difference-in-differences model. The’new mechanism’enhance the fiscal expenditure efficiency by improving fiscal expenditure which provided by the Central Government and Provincial Government and adjust the responsibility of governments at different levels. This paper uses the method of data envelopment analysis to conduct analysis of the use efficiency of compulsory education funds in the western rural areas. It comes to the conclusion that the scale efficiency of fiscal expenditure had improved, but the technical efficiency had declined. The improvement of the expenditure scale challenged the public sector a lot. Based on this conclusion, the paper puts forward the suggestions of strengthening the efforts in fiscal expenditures for education, narrowing the gap among different regions, setting up the excitation mechanism, perfecting the budget system, in order to improve efficiency of fiscal expenditures for education further.