Economic growth is the process of human capitals value creation and realization，therefore，humancapital，economic growth，income distribution and personal welfare are inherently organic related. However，by the-oretical and empirical analysis we found that the unique incentive structure in Chinese fiscal decentralization，the unsound decentralization institutional arrangements，the absence of central government responsibility and lack of supervision mechanism led the local government to spend less in human capital which affected the accumulation of human capital and its contribution to economic growth and the income distribution gap gradually expanded. So，the improving measures should be considered from the above －mentioned four aspects.