Equity-oriented budgeting in education, amid chronic government budget deficits and economic dependence on unstable revenues, has evolved into a key issue of educational governance. Evidence indicates that over the past 15 years, education has faced a persistent budget deficit with approximately 27 to 30 percent resource shortages, the consequences of which include a decline in the quality of educational and upbringing activities, the deterioration of health and technology programs, a decrease in capital appropriations, the exacerbation of school managers' rule evasion, diminished teacher motivation, and the deepening of educational inequality. Meanwhile, the issue is not merely a shortage of resources, but rather poor management and the absence of a scientific resource allocation model, which has caused the lion's share of the budget to be consumed by personnel costs, leaving a meager share for quality enhancement. Equity in resource allocation must transcend the approach of "horizontal equity" and, by identifying regional and social disparities, move toward "vertical equity" and allocation based on composite indicators. From a policy perspective, emerging from the current situation necessitates the simultaneous implementation of three strategies: securing new financial sources (including earmarked taxes and increasing the government's share), optimal resource management (structural reform, human resource organization, and the design of an efficient monitoring model), and altering the methods of delivering educational services (gradual decentralization, curriculum reform, and the utilization of modern technologies).