Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
China’s official entrance age to pre-primary education is three years old. According to the World Bank, the preprimary enrollment rate was 93% in 2021.
According to official Chinese data, the gross enrollment rate in preschool education reached 92% in 2024.
Governance
The Ministry of Finance (MOF) and the Ministry of Education (MOE) jointly manage the funds which support the development of preschool education. The MOE provides the basic data required for fund calculation. Together, they determine the capital budget and performance targets of each province.
Tuition-free status
Starting from the fall semester of 2025, tuition and educational fees for one year of pre-primary education in public kindergartens will be fully waived for children. For eligible children attending private kindergartens approved by education authorities, fee reductions will be implemented at a level comparable to local public kindergartens.
1. Education resources to subnational governments
General transfer payments are the main mechanism to redistribute resources across regions. Additional funds, specifically supporting pre-primary education, are allocated using a factor method. The formula for the allocation of funds to support the development of preschool education is:
Funds for supporting the development of preschool education in a province = subsidy funds for expansion and quality improvement + subsidy funds for exemption from childcare education fees.
1. Subsidy funds for expansion and quality improvement: Regional funding scales are first determined based on the overall budget allocation, with moderate prioritization given to central and western regions. On this basis, funds are distributed to provinces according to basic factors and input indicators. The basic factors (weight 80%) consider the cost necessary for universal and inclusive preschool education, the development of public kindergartens, and the teaching team. The input factors (weight 20%) consider the degree of local financial effort and social investment.
2. Subsidy funds for exemption from childcare education fees: The nationally unified policy for exempting childcare and education fees is jointly financed by central and local governments. The central government determines the amount of fiscal subsidies for this initiative based on verified provincial subsidy standards, the number of children, and the established central-local cost-sharing ratio. The calculation formula is:
The subsidy fund for exemption from childcare education fees in a province = the number of eligible children in kindergarten in the province× the financial subsidy standard for exemption from childcare education fees× the proportion of central finance's contribution
2. Education resources to institutions
The allocation of funds to preschools is primarily the responsibility of county-level governments. The per-student public funding subsidy standard for public kindergartens shall be no less than CNY 600 per year. Local governments have established a subsidy mechanism for inclusive private kindergartens. For children enrolled in private kindergartens, childcare and education fees are reduced according to the exemption level of local public kindergartens. Private kindergartens approved by the education department receive the subsidies corresponding to reductions or exemptions in childcare fees.
Kindergartens are encouraged to allocate a certain amount of funds from business income to help children from economically disadvantaged families and other groups receive preschool education.
3. Education resources to students and families
Building on the nationally unified policy of exempting childcare and education fees, provincial governments provide targeted support to children from financially disadvantaged families, as well as for orphans and children with disabilities to access preschool education, in accordance with local conditions.
4. Social policies and family support programmes
There are several national subsidy programmes, such as the living allowance for people with disabilities, the “minimum livelihood security” (最低生活保障), which provides impoverished families with a basic income, and other relief and support policies for the extremely poor (特困人员救助供养) since 2000. Local governments are expected to complement these with their own measures.
This profile was reviewed with the support of the Chinese National Commission for UNESCO and national expert Professor Yu Zhu at the University of Dundee, UK
