Abstract: Abstract: this paper applies the decomposition of Gini coefficient to decompose the difference of inter-provincial financial ability according to the eastern, the middle, the western and the northeast regions of China, and demonstrates the equalization effect of the central governmental transfer payment on the regional financial ability. The result indicates that the difference of inter-regional financial ability is obviously bigger than the difference of intra-regional financial ability before the central government transfer payment, and the equalization effect of the central governmental transfer payment on the regional financial ability is mainly reduce the difference of inter-regional financial ability，slightly shorten the difference of intra-regional financial ability. Finally, this paper analyzes the demonstration results and offers some relative proposals in aspect of perfecting the transfer payment system.