Abstract:The final aim of intergovernmental grants is to achieve equalization of the supply of public products and services. The intergovernmental grants in China have many types, but the Lump-sum grants is the most canonical and external one, and is the main method to improve the level of the supply of local public services. This article study on lots of empirical data, and draw a conclusion that the flypaper effect exists in China, which has deep relationship with intergovernmental grants.