China, as one of the largest countries in the world, keeps a very fast development speed. In the early 1980s, the Chinese government started economic reform, which is named "Reform and Opening*. China has benefited a lot from such reform and experienced dramatic changes. Government cannot make expenditure in specific fields at the micro level or be directly involved in business activities, so the expenditure of the government tends to be restricted in certain public services. Central and local government expenditures are fixed capital, and this kind of capital is called public expenditure. Public expenditure of Chinese government plays an important role in infrastructure and public products, which have promoted economic growth, adjusted the economic cycle and the economic structure, as well as coordinated the regional economic development for a long time. How to use public expenditure, whether the public expenditures are efficient, and how to evaluate regional inequality are required for further discussion. This thesis strives to give overviews on the public expenditure in China on the basis of panel data with all provinces and long periods. The previous researches on the public expenditure mainly focus on just one kind of public expenditure or on total public expenditure. In my research, through the analysis of the Chinese public expenditure, I want to find whether the public expenditure has the effect on specific areas in China and evaluate part of Chinese government's ruling ability on this aspect. To make the thesis more complete, I have selected the national public expenditure from 1978 to 2014. Such a long period can give us an overall image of the change for the national public expenditure. After analysis, I found the relationship between public expenditure and regional inequality. The dataset, which involves the thirty-one provincial administrative regions' public expenditures and conventional expenditures from 2001 to 2014 in China, is used to estimate the effects of different public expenditures on the regional inequality in each of the three regions to be quantified. Besides, this dataset also involves the national public expenditures and conventional expenditures from 1978 to 2014. For a lack of resources, the total amount of public expenditure for China is not enough. When in decision making progress, the government always gives biased policies, which aggravates regional inequality. It is extremely important to change the serious situation of China's public expenditure. Finally, I give some policy implications.