Abstract: From the perspective of local deficit financing，this paper tries to expounds the internal logic between fiscal decentralization and local government’s land finance. Theoretical analysis shows that: fiscal decentralization in China aggravates local deficit financing, and the latter becomes an incentive for local governments to grab off-budgetary financial revenue, which will impel them to take active land finance strategy to increase local fiscal revenue. At the same time, our empirical test among them three using provincial panel data shows that fiscal decentralization and local deficit financing both have obvious positive driving effects on land finance.