Public Economics is a science to study the supply of public goods and the best choice of government's public policies, and to explain, analyze and regulate the functions and role of government from the perspective of Economics. It takes the balanced analyses as the basic assumption and analytical tool, which helps the government with its function definition, operation and its choice of the valid supply of public services to realize eventual Pareto optimality. Education is Quasi-public goods, so government has the responsibility and obligation to provide basic public education and it is also the logic starting point for the research of education finance. There are a lot of social contradictions caused by the fiscal policy of education even in western social welfare societies. Fiscal policy of education has become the contradiction focus for political parties, parliament, government, educational institutions and the students, which may even lead to street protests. Because of large scale, low starting point and high aim of China's education, unequal distribution of regional development and other reasons, the fiscal policy of education in China is particularly more complicated than in the West.With the theory and methods of public Economics, through the analysis on the public attribute of education products, on the basis of empirical analysis of the financial situation in contemporary China, this paper focuses on researching and analyzing the necessity, feasibility and operation mode of the reform in the fiscal policy of government public education under the condition of China's market oriented economy, to explore ways of increasing education investment and its efficiency. Compared with the traditional Finance, Public Economics not only researches government payment, but also the supplier of public goods and Quasi-public goods under the condition of the failure of both the government and market. In China, the supplier of Quasi-public goods is the non-governmental institutions. Public Economics particularly pays attention to the government-led public choice and policy, stresses the economic growth, and especially emphasizes on the effectiveness of the resources allocation and the fair distribution of income. The problem of education finance is not just a government payment issue. So it is not just a fiscal issue. It affects public welfare and the basic fairness and efficiency of society. Moreover, educational institutions themselves belong to non-governmental public sector, and their economic behaviors and performances have a direct influence on the efficiency of education