Based on data from city level,this paper empirically checks the effect of equalized fiscal transfer on productivity efficiency of public services.The result shows that the equalized fiscal transfer has obviously slowed down the productivity efficiency of local public services,while the earmarked transfer enhances the efficiency to some degree; the equity function of the equalized fiscal transfer is strengthened,but substitution effect appears between efficiency and fairness,which proved much evident in the areas mainly depending on equalized fiscal transfer.Consequently,this paper puts forward several policy suggestions,such as central government should strengthen the regulation and quality evaluation in the process of allocating fiscal transfer,and also draw up the incentive mechanism of fiscal transfer.