It is necessary to institute a lifelong study system to provide sufficient professional support for and knowledge contribution to the state knowledge innovative system and the modernization drive. Under the state macro-guidance, the central authorities and provincial governments will have a clear definition of responsibility and division of work, with the latter playing a dominant role. Meanwhile, it is necessary to continue pushing forward the reform of university entrance examination system, the college graduate employment system and the teaching system, increase the intensity of the reform of the colleges' internal managerial system, accelerate the socialization of their support work, and improve their managerial standard and school-running efficiency. It is imperative to transform the concept and set the concept of taking education as infrastructure construction and investment in education as an important fundamental and production investment, realize the role of educational development in spurring economic growth and take effective measures to increase the intensity of inputs in education. It also stresses the importance of realizing the role of education development in stimulating other trades and economic growth.
Educational development meets the requirement of expanding domestic demand.
The budgetary spending on education by the central government has been raised by one percentage point annually since 1998. The ratio will be raised by three percentage points a year until the year 2000. This has fully displayed the government's determination to implement the strategy of invigorating the country by means of science and education. In line with the requirement of the State Council, that art of revenues in excess of the budgets of local governments and extra-budgetary revenues should be allocated to education at a ratio not lower than that of educational spending to total expenditures as set in the beginning of a year. It is necessary to improve collection and management of urban and rural educational surcharges, and continue granting preferential tax treatment to school-run enterprises.