The system of fiscal transfer is essential for implementing the Scientific Outlook on Development,optimizing economic and social structure,promoting equalization of basic public services and balancing development between regions . Based on the relevant data of China' s 31 provinces for the period of 1999—2009,this paper examines the factors affecting intergovernmental fiscal transfers in China through panel data model . The results of the panel data analysis reveal that the present pattern of allocation of fiscal transfers is not beneficial to equal access to basic public services . Though the central government pays some attention to the overall economic development level and budgetary revenue when allocating fiscal transfers,it has ignored the existence of a large number of extra-budgetary,off-budgetary revenue .In particular,the central government' s concern about national unity has significant effects on provinces' s hares of fiscal transfers,whereas provincial governments possess limited bargaining power in the allocation of fiscal transfers .