4. FINANCING HIGHER EDUCATION: DIVERSIFICATION
OF RESOURCES

Current Context of Higher Education Finance

Public Finance

Since China embarked on economic reform in 1978, the Gross Domestic Product (GDP) grew by an impressive 9.8 percent per year in real terms, from Y 1,006 billion to Y 4,501 billion in 1994 (in constant 1994 prices) (Table 4.1, Annexes 13A and 13B). However, the growth of government revenue fell far behind that of GDP, increasing at an annual average of only 2.6 percent over the period. This resulted from decentralization and from permitting production units to retain much of their earnings without simultaneously putting in place a national tax administration until 1994. The revenue-to-GDP ratio declined from 34 percent in 1978 to 13 percent in 1994 (Annexes 13A and 13B). Government expenditure, however, increased at 3.3 percent per year, higher than revenue, resulting in budget deficit in all but one year (Table 4.1). Between 1987 and 1993, the public sector deficit hovered around 11–12 percent of GDP and was a key factor underlying inflationary pressures in the economy. In 1994, however, the public sector deficit declined to 9.9 percent.1

Public expenditure on education increased from Y21 to 98 billion (in constant 1994 prices), by an annual average of 10 percent between 1978 and 1994, far exceeding the respective growth rates of the total government revenue and expenditure (Table 4.1, Annexes 13A and 13B). As the overall public spending shrank over the years, public expenditure on education as a percentage of total government expenditure rose from 6.2 percent in 1978 to 17 percent in 1994. Public expenditure on education as a percentage of GDP rose from 2.1 percent in 1978 to the height of 3.1 percent in 1989, and then fell back to 2.2 percent in 1994 (Annex 13B). This level of public spending on education is low in comparison with least-developed countries' average of 2.8 percent, developing countries' average of 4.1 percent, and developed countries' average of 5.3 percent.2

Total public allocation to higher education grew from Y 4.2 to 18.6 billion (in constant 1994 prices), by an annual average of 9.7 percent between 1978 and 1994 (Table 4.1, Annexes 13A and 13B). Public spending on higher education increased from 20 percent of total public expenditure on education in 1978 to the peak of 29 percent in 1984, then declined to around 17 percent between 1989 and 1992, and climbed back to 19 percent in 1994 (Annex 13B). Since under 2 percent of the age cohort were enrolled in higher education in much of the 1980s, the high share of public spending devoted to them reflected the effort to rebuild the higher education system.

1The Chinese Economy: Fighting Inflation, Deepening Reform (World Bank, 1996), p. 10.

2 UNESCO, Statistical Yearbook 1995, p. 2.28.

-41-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
China: Higher Education Reform
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 160

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.