The Report of the 19th National Congress of the Communist Party of China pointed out that establishing a fiscal relationship between the central and local governments built upon clearly defined powers and responsibilities, appropriate financial resource allocation, and greater balance between regions. This pointed out the direction for the reform of the fiscal relations between our governments and formed a new roadmap for reform. This paper attempts to analyze the current status of the current inter-governmental financial relations by reviewing the evolution of the financial relations since the founding of the People's Republic of China, especially since the reform and opening up, and in accordance with the principle of “clear power and accountability, balance of financial resources, and regional balance” and the current intergovernmental fiscal relations. Difficulties are highlighted in order to formulate suggestions for the reform of the new financial roadmap in line with China's actual fiscal relations.