Abstract
Early childhood education in China has undergone dramatic changes during the past seven decades, associated obviously with the rapid social transition and economic growth. Educational policies and government investments are supposed to be the key influential factors in the development of early childhood education. By decomposing the historical progression of early childhood education in China into four stages, this article sets out to explore the dynamics of early childhood education through the lens of fiscal policies. Following a historical overview and analysis, the article reveals that the evolution of fiscal policies of early childhood education are highly related to and influenced by the development of the society and its economic status. Top-level design and overall planning of early childhood education are proven to be the most essential factors for its sustainable development. Hence, the laws and regulations concerning the educational and welfare value of early childhood education and fiscal responsibilities of governments at all levels should be clear and definite so as to make sure the stable financial funding and supporting. In order to establish and expand the public system of early childhood education services, governments of higher levels should take more fiscal responsibilities and look for ways to fund early childhood education efficiently and effectively.
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