This paper uses DEA-CCR model and Malmquist index to calculate the technology efficiency and total factor productivity level of provincial basic education in China from 2004 to 2012, to reveal the optimization and waste phenomenon of fiscal basic education. It gives rise to the measurement results as follows: firstly, less than half of provincial basic education resources configuration have been optimized; secondly, the basic education in central regions wastes more in terms of fiscal education expenses, capital construction funds, the number of teachers and fixed assets investment than the one in the western regions; thirdly, relative "technology regress" resulting from policy lag of basic education and the dissatisfaction of the quantity and quality of basic education supply with the needs of economic development, triggers the reduction in total factor productivity of basic education. It argues that when basic infrastructure level of education reaches a certain extent, fiscal funds improving basic education allocation efficiency should be more put into elements related to the quality of basic education, rather than quantity elements. It explores the reasons for resources waste from the perspectives of dynamic changes in technology efficiency and total factor productivity of basic education, points out current waste degree of financial resources, and provides a pre-policy guidance for the reasonable size of urbanized basic education supply costs afforded by local governments in the next stage.