“No Less Than 4%”: A Policy Review of China's Fiscal Spending on Education, 2000–2020

Abstract

Purpose This study aims to review the policy background of China's ever-growing fiscal spending on education and discusses the aggregate growth of its national fiscal spending on education and the responsible bodies involved. Design/Approach/Methods This study adopts policy analysis and descriptive statistics as its primary research methods. Findings Since 2012, China's national fiscal spending on education has accounted for no less than 4% of its gross domestic product for nine consecutive years. Additionally, over 80% of China's total education spending is underpinned by state finances, with the country boasting the largest education system in the world. While compulsory education accounts for approximately half of China's national fiscal spending on education, higher education reflects the highest budgetary education spending per student. Furthermore, China has been actively increasing its fiscal spending on pre-school education. Originality/Value The findings of this study have implications for understanding the status quo and changes in China's education spending.