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Budgetary appropriations
by governments at different levels are the major source
of educational funds. Since China began implementing reform
and open policies in the late 1970s, governments at all
levels have had a growing awareness of the importance
of education. In many localities, educational fund receives
priority in local financial outlays.
According to Outline for the Reform and Development
of Education in China, by the year 2000 government budgetary
appropriations shall constitute 4 percent of the country's
gross domestic product (GDP). How to reach this 4 percent
proportion has become the basis for drawing up specific
plans for education investment.
To ensure government input in education, Education
Law of the People's Republic of China provides that
education-oriented appropriations shall increase within
the central government's budget and within the budgets
of local governments, that the increase of education-oriented
appropriations shall be greater than that of regular
fiscal incomes, and that such increase shall be calculated
according to the average educational expense of the
total enrollment of schools. These provisions are intended
to make sure that budgetary outlays are enough to pay
teachers increased salaries and cover increased average
expenses of students.
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