The Basic Education Need Expenditure was first regulated in the Compilation and Management of theEducation Expenditure Act in 2000. For the calculation of the Basic Education Needs and three formulae- the optimal class scale formula, the marginal student cost formula, and the favorable formula. This study examines the fiscal equity effects- horizontal equity, wealth neutrality, and vertical equity-of the Basic Education Needs Expenditures for k-9 schools in 2003. After measuring the fiscal equity effects of the three formulae, this study recommends policy makers adopt the favorable formula since it includes important criteria for the distribution of general subsidies.