Based on the investigation, it reaches the conclusion that the shortage of funds of compulsory education in the rural areas can t be solved under the managing system with " county as the center", under the economic conditions of a county run mainly by agriculture.

With the economicand social development, colleges and universities are facing unprecedented prob- lems, especially the shortage of funds.

The article makes a brief introduction to the main mediums and each scale of the source of funds,the situation of lacking funds in Indian higher education,the article also shows the ways to solve lacking funds in Indian higher education by increasing state and private expenses.

It is suggested that increasing educational investment, decreasing waste of educational investment, strengthening the accounting management, and so on can be adopted as countermeasures to solve the problem of the shortage of educational funds.