Abstract：After the reform of tax distribution system in 1994,the intergovernmental fiscal relationship in China developed to such a complexion that the fiscal revenue was centralized while the administrate responsibility and the expenditure burden was transferred to the lower government,which resulted that the local fiscal running was tight and brought lots of problems in local management.We should follow a series of arrangement views to put the intergovernmental fiscal relationship in order,such as "take public demand as the most important" "match the fiscal burben and the fiscal capability" and "take providing the basic public goods as the priority",so as to solve radically various deep-seated problems,such as defining the governmental efficient functions,compartmentalizing the intergovernmental responsibility and expenditure burden when disposing the public affairs,reconstructing the intergovernmental fiscal transfer payment,breaking the "one goods,two system" in the segmentation and different administration between the public goods in city and country.
