The Mechanism Study Of Financial Supervision Embedded Into Budget Management Based On Game Theory

The party's eighth plenary meeting emphasized that the finance is the foundation and an important pillar of the national governance, which embodies the new location and the sacred mission of the national financial work entrusted by the Central Committee of the Communist Party of China. Financial supervision is the key part of the financial work, so strengthening the budget supervision and perfecting the supervision mechanism covering all budget funds and the whole operating process is the focus of the work to ensure the smooth realization of financial supervision.At present, in the process of budget managements, false budgeting, arbitrary adjustment of the budget and large difference between budget and final accounts are widespread. We need to increase the budget accuracy, strictly prohibit without a budget, super budget expenditures, must resolutely eliminate diverted, misappropriated, interception of budget funds and other illegal phenomena. A certain lag exists in the NPC Budget Supervision and audit supervision and real-time supervision effect cannot play so financial supervision plays a key role.This paper based on the perspective of game theory, analyzes the game relationship in the process of budget management to find out the financial supervision starting point for each link in the process of budget supervision and optimizing the process of budget supervision. On the basis of traditional game models, in the game of budgeting, innovatively adopted variables of the rental income, pre supervision results, constructed tripartite participation game model; In the game of budget execution and adjustment, take the cooperation mechanism between the supervision departments and the budget management institutions into account to the model; In the evaluation of the final accounts, carry out the three party dynamic game analysis.The conclusion of the study shows that to achieve effective embedding of financial supervision, we need reconstruct the mechanism from the following three aspects. First of all, in the preparation of the budgeting. Rental income will reduce the effort of budget management institutions and the fine and the administrative penalty can both influence the probability of collusion. Secondly, in the part of budget implementation and adjustment. Before the introduction of financial supervision departments, capital budget are withheld, misappropriated and corrupted. But after the introduction of the supervision department, the cooperation between the budget management institutions and supervision departments can play a deterrent effect on the behavior choice of the budget departments. Third, in the final part of evaluation. Game inefficiency exists between budget management institutions and budget departments. After the introduction of supervision department, the probability of the latter to prepare accounts according to the facts can be improved. And can increase his motivation to work hard, which indirectly improve the efficiency of the use of budget funds.