Legal basis: Compulsory Education Law of People's Republic of China (PRC).
Article 42 The State shall fully include compulsory education in the scope of financial guarantee, and the funds for compulsory education shall be guaranteed by the State Council and local people's governments at various levels in accordance with the provisions of this Law.
The State Council and local people's governments at all levels will include compulsory education funds in their fiscal budgets, and allocate compulsory education funds in full and on time according to the staff establishment standards, salary standards, school construction standards and public funds per student, so as to ensure the normal operation of schools and the safety of school buildings, and ensure the payment of staff salaries in accordance with regulations.
The State Council and local people's governments at all levels should make the growth ratio of financial allocation for compulsory education higher than the growth ratio of recurrent financial revenue, ensure the gradual growth of compulsory education funds according to the average number of students in school, and ensure the gradual growth of teaching staff salaries and public funds per student.
Forty-third the basic standard of public funds per student in schools shall be formulated by the financial department of the State Council in conjunction with the administrative department of education, and adjusted in a timely manner according to the economic and social development. Formulating and adjusting the basic standard of public funds per student should meet the basic needs of education and teaching.
The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, according to the actual conditions of their respective administrative regions, formulate standards for per capita public funds for school students that are not lower than the national standards.
Special education schools (classes) per capita public funds should be higher than ordinary schools.
Forty-fourth compulsory education funds shall be invested in a system in which the State Council and local people's governments at all levels shall share their responsibilities and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for overall implementation. The funds needed for compulsory education in rural areas shall be divided by the people's governments at all levels according to the provisions of the State Council and shared in proportion.
People's governments at all levels provide free textbooks for school-age children and adolescents with financial difficulties and subsidize the living expenses of boarders.
The specific measures for the guarantee of compulsory education funds shall be formulated by the State Council.
Forty-fifth local people's governments at all levels should separate the funds for compulsory education in the financial budget.
The people's governments at the county level shall make balanced arrangements for compulsory education funds except for schools in rural areas and weak schools.
Article 46 the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall standardize the financial transfer payment system, increase the scale of general transfer payment, standardize the special transfer payment for compulsory education, and support and guide local people's governments at all levels to increase their investment in compulsory education. Local people's governments at all levels shall ensure that the transfer payment funds of the people's governments at higher levels for compulsory education are used for compulsory education in accordance with regulations.
Article 47 the State Council and local people's governments at or above the county level shall set up special funds according to actual needs to support the implementation of compulsory education in rural areas and ethnic minority areas.
Article 48 The State encourages social organizations and individuals to donate to compulsory education, and encourages the establishment of compulsory education funds in accordance with the provisions of the State on the management of foundations.
Forty-ninth compulsory education funds in strict accordance with the provisions of the budget for compulsory education; No organization or individual may occupy or misappropriate funds for compulsory education, or illegally collect or apportion fees from schools.
Fiftieth people's governments at or above the county level shall establish and improve the audit supervision and statistical announcement system of compulsory education funds.