Abstract: In this paper, 22 provinces, autonomous regions and municipalities directly under the panel data （purpose）analyzed the relationship between fiscal decentralization, pro-poor spending and poverty reduction. (Result) We got a result that fiscal decentralization was not conducive to poverty reduction results (conclusion) because in the Chinese political system environment, fiscal decentralization would lead to local governments in pursuit of economic growth and increased investment in productive infrastructure category, that was discussed in this paper pro-poor expenditures. Pro-poor expenditures combined with centralized financial impact on poverty can be more obvious, because if a high degree of fiscal decentralization, although the absolute value of the pro-poor expenditures increased, it would still down in relative value. It further increased the gap between rich and poor and was not conducive to social equity and poverty reduction.