Game Of Allocation Of Financial Resources Between Levels Of Government Under The "direct Control Of The County.

The current government system in our country is fiscal system of five levels,namely the central government, provinces, cities, counties, and townships. Since thereform of tax-sharing system from1994, fiscal system between the central govern-ment and provincial governments have been consummated day by day, but the inter-provincial levels of government still have not been established a clear responsibili-ties and fiscal resources allocation model. It causes each local government level in thefinance resource distribution contradiction become increasingly prominent. In thegovernment finance, the financial power aggregate upwards, while the right of publicservices aggregate downward, resulting in uneven distribution of financial resources.The local government’s financial pressure is huge, but the financial resources can beobtained are scarce.In2005, the Ministry of Finance in the "About Effectively Alleviatethe Financial Difficulties of the County’s Opinion"(FB [2005]5) pro-posed:"provinces (autonomous regions and municipalities) must actively promote thepilot of provincial governing county.For the financial strapped counties, institution-al grants, tax return, transfer payments, special subsidies, capital allocation should bedirectly checked and supervised to the county”. Take the pilot of provincial governingcounty as one of the supporting measures to ease the financial difficulties of county.In the finance system, each level of governments as an independent stakeholders,to seek the profit maximization, namely the maximum limit to gain finance resources,will carry on a process of benefit gambling.In the provincial governing countyreform, the provincial, city and country are facing a new gambling environment. Fis-cal balance of the original game will be break. Three levels of govern-ments will adopt a new gambling behavior to gain additional financial resources, andstart a new fiscal game.This article makes the analysis to finance resource distribution situation of eachlevels of government from the perspective of the game. Analyze and compare the in-fluence which the provincial governing county reform produces to the financial re-sources gambling between the governments. Explore the optimal allocation of finan-cial resources by establishing a gambling model. And take Yunnan Province as the example to analysis influence factor of government’s fiscal effort. In the end, the ar-ticle put forward suggestions for optimal allocation of financial resources in the futurefiscal system reform.