Intergovernmental Transfer Paymen t is an elementary means to harmonize the intergovernmental financial distribution relationships.Its ta rget is to realize a rough equalization of the communal service level amon g different areas.After making a review of the pr esent intergovernmental transfer p ayment system,the article systematically analyzes the major problems existin g in the inter -governmental transfe r payment system with regard to its structure and function.Basing on it,the artic le discusses the basic ideas on how to improve China' s intergovernmental transfer payment system.