Our Provincial Government The Financial Expenditure Competitive

Currently, China is in the process of reformation of fiscal decentralization. There is a obvious trend that the local governments are possessing more financial resources than before. While the central government is eager to guide its policy in order to the effective local government behaviours, but practice shows that the effect of the implementation of central policies,good or bad, in fact, depends largely on the rational and irrational behavior of role of various local governments.Therefore, the behaviours of the local governments that the paper argues is realistic. And as the deepening of fiscal decentralization, fiscal spending has become a competitive game between local governments for important resources. Now, local governments' spending has been intensely competitive, we can easily see the effects of inter-governmental competition in our usual life.At present, tax incomes are discussed more frequently in both domestic and international literatures, but the study of local fiscal expenditure is still very lacking. Therefore, the paper here adopts Spatial statistics to analyse the competition of the local financial expenditure. The results showed that both total expenditure of the provincial governments and its important component- economic expenditure have significant competition, but another important component-expenditure of people's livelihood's competition appears very weak. We also found that local governments do not seem to increase size of government social expenditure, as increased the proportion of elderly population. The conclusions drawn here, will help recognize the real competition, and verify the reasonableness and necessarity of continuity to improve the government initiative on the construction of people's livelihood.