Abstract: The No. 1 Document in 2018 of the Central Committee of CPC points out that the government owes too much to the people’s livelihood in China’s rural areas, and the imbalance between supply and demand in rural public services is prominent. In the context of the Rural Revitalization Strategy, it is of great significance to solve these problems. To this end, this paper makes use of China’s provincial panel data to conduct an empirical test of whether the fiscal decentralization effect hypothesis is applicable to China’s rural public service field from the perspective of fiscal decentralization. The results show that fiscal decentralization has a positive impact on the rural public health care service supply, while the degree of promotion incentive has a significant negative impact. At the same time, there is a serious problem of insufficient and imbalanced regional development in China’s rural public health services. Thus, it is necessary to deepen the financial system reform that matches the financial power, improve the performance appraisal mechanism of government officials, establish and improve the public demand expression mechanism for the farmers, and further improve the supply efficiency of rural public health services.

Key words: fiscal decentralization; promotion incentives; rural public health services; public service supply