Article 53 The State practices a system wherein government appropriations constitute the main body of the educational appropriations, supplemented by funds raised from a variety of other sources, and the State gradually increases its educational input so as to ensure a stable source of educational appropriations for State-run schools.

With respect to schools and other institutions of education established and run by enterprises, institutions, public organizations, other social organizations or individuals, their operating expenses shall be raised by the respective sponsors; the people’s governments at various levels may provide them with appropriate support.

Article 54 The proportion of educational appropriations in gross national product allocated by the State shall gradually rise, as the national economy develops and the financial revenue increases. The specific proportion and measures for its implementation shall be prescribed by the State Council.

The proportion of educational appropriations allocated by governments at various levels shall gradually rise along with the development of the national economy.

Article 55 The educational appropriations of the people’s governments at various levels shall be listed separately in their fiscal budgets in accordance with the principle of their unified authority over the administrative affairs and the financial affairs.

The people’s governments at various levels shall see to it that their appropriations for education shall increase at a faster rate than their regular revenues , that the average expenditure on per enrolled student shall increase steadily and that the teachers’ salaries and the average public expenditure per student shall increase steadily.

Article 56 The State Council and the people’s governments at or above the county level shall set up a special fund for education to be used mainly for assisting outlying and poverty-stricken areas and areas inhabited by minority ethnic groups in enforcing compulsory education there.

Article 57 Taxation authorities shall collect in full the extra charges of education funds, all of which shall be controlled by the administrative departments of education and used mainly for the enforcement of compulsory education.

Pursuant to the relevant regulations of the State Council, the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government may decide to levy local extra charges for educational purpose, which shall be used exclusively for education.

The people’s governments at the township level shall make arrangements for the collection of the extra charges of education funds incorporated in the overall planning of rural townships, which shall be administered by the administrative departments of education at the county level on behalf of the rural townships or by the people’s governments of townships and shall be used for educational undertakings at the township and village levels of their respective townships. The specific proportion of the extra charges of education funds incorporated in the overall planning of rural townships and the specific measures for the administration thereof shall be prescribed by the people’s governments of provinces, autonomous regions, or municipalities directly under the Central Government.

Article 58 The State adopts preferential measures to encourage and help schools to launch work-study programs, to provide services for the community and to set up school factories, on condition that this shall not affect the normal education and teaching.

Article 59 With the approval of the people’s governments at the county level, people’s governments of townships, nationality townships or towns may , on the basis of voluntariness and according to their own capability, raise funds in their own administrative areas for education. Funds thus raised shall be used for renovation and repairs of dilapidated buildings and construction of new buildings for schools providing compulsory education; such funds shall not be diverted to any other purposes.

Article 60 The State encourages social organizations and individuals both at home and abroad to donate money for education in China.

Article 61 Educational appropriations from the State and contributions and donations offered by social organizations or individuals for education shall be used for education; they shall not be diverted to any other purposes or withheld.

Article 62 The State encourages the use of loans and other financial means to support the development of educational undertakings.

Article 63 People’s governments at various levels and their administrative departments of education shall strengthen supervision and control over educational appropriations for schools and other institutions of education in order to achieve better results of investment in education.

Article 64 Local people’s governments at various levels and their relevant administrative departments shall incorporate capital construction for schools into rural and urban construction plans, make overall arrangements for the land and materials needed for capital construction for schools, and give priority to and adopt preferential policies towards such capital construction in accordance with the relevant regulations of the Sate.

Article 65 People’s governments at various levels shall, in accordance with the relevant regulations of the State, give priority and adopt preferential policies with regard to the publication and distribution of textbooks and other printed materials for teaching and learning purposes, the production and supply of teaching and learning instruments and equipment, and the importation of books and other printed materials teaching and learning instruments and equipment for education and scientific research.

Article 66 People’s governments at or above the county level shall develop satellite television education and other modern means for teaching and learning, and the administrative departments concerned shall give such development priority and support.
The State encourages the wide use of modern means in teaching and learning by schools and other institutions of education.