Abstract: Since 1995，the total amount of local government’s public service spending has increased rapidly; but not enough，the regional disparities are relatively bigger. As for the expenditure per capita, the large populated provinces in the central and western regions are below the average. As for the increment distribution of public service expenditure，the proportion from top to bottom is taken by the eastern，western，central and northeast regions. From the perspective of different regions, the inter-regional gap is the major cause, which is mainly caused by the eastern and northeastern regions，the central and western regions have been at a disadvantageous position. Therefore, we should optimize the structure of fiscal expenditure, construct the public service-oriented governments, formulate the Law of Transfer Payment, strengthen the support to the central and western regions, enhance the awareness of the responsibility of the central government, establish the national standards of public services, integrate the forces of the government, market and society, and form a pattern of diversified supply.

Key words: local government; public services equalization; public services expenses; transfer payments; spatial and temporal distribution