The government has given the priority to the west of China in launching the fiscal transfer payment,reflecting on the Grand Western Development Programme. Such priority has also been provided to support some particular business and social proprammes from that area,aiming at achieving a balanced development. Between 2001 and 2012,per capita GDP and HDI of different districts were generally used as the key criteria to evaluate the gap of economic and social development within China; as the variables of fiscal transfer payment is introduced as a key criteria,it is found that the corresponding β convergence exists,indicating that convergence rate of HDI is much greater than that of economic growth. The gap between the east and the west has been narrowing,particularly in social development. It is therefore proved that the fiscal transfer payment has efficiently minimized the gap between the west and the rest of China in development and human development.