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CHAPTER ALLOCATION AND SOURCES OFEDU C ATIONAL EXPENDITURES

When we take an overview of the educational expenditures in private schools in Japan, it can be seen that, at all education levels, expenditures per student are smaller than those in national and local public institutions and this gap between private institutions and national and local public institutions is increasing year by year.

The percent occupied by debt services is larger for private institutions of higher education than any other major category, and the percent occupied by donations, loans and tuition fees, etc., is relatively higher than other sources.

Tuition and other fees in private institutions of higher education are conspicuously higher than those in national and l6cal public institutions. However, when comparing the indices of recurrent expenditures by institutions based on such fees, one notes a beneficiary index of as high as 18 for national and local public institutions, while, in private institutions, recurrent expenditures are almost identical to students' contributions. There are very wide discrepancies between private institutions and national and local public institutions, on this point.

Although there are many problems in Japan's educational finances as were pointed out above, it should be noted that at the same time, the national government has continued to make efforts to solve such problems, and has annually increased the national subsidies for education. It has also taken, at the same time, various measures for the improvement of local educational financing, such as the amendment of the Local Finance Act, and various measures for the assistance of private schools.

The first category of measures taken by the national government includes those aimed at lessening the burden to beneficiaries through the amendment of the Local Finance Act, etc. More specifically, a 1963 amendment to the Act prohibited beneficiaries from bearing the expenses for the salaries of teachers in municipal schools or expenses for the maintenance or repair of municipal elementary and lower secondary schools. In addition, there are other measures to lessen the beneficiaries' burdens, such as the full implementation of provisions of free text-books for pupils in compulsory schools, the increase of the national treasury's share of expenses for school supplies, the increase of national subsidies for expenses for school facilities and equipments, etc.

The second category involves measures for the assistance of private schools. In view of the importance of the role of private schools within the entire' school education system in Japan, the national government has already made various efforts to promote education in private schools. Since 1970, it has not only increased the existing national subsidies but has also introduced a new system of subsidies for the recurrent expenditures of private institutions of higher education (universities, junior colleges and technical colleges), including teachers' salaries.

The Private School Promotion Foundation has been newly established, for the effective execution of such measures, replacing the former Private School Promotion Association. The new foundation is expected to be useful for the effective and comprehensive execution of national policies for the assistance of institutions of education in addition to allocating national subsidies to individual institutions and making loans to them.