Abstract: At present, the trend of the income gap between urban and rural areas in our country is expanding because of the existence of the inequalable public services. To realize the equalization of basic public services in urban and rural areas is an effective way of narrowing the income gap between urban and rural areas. The ways are as follows: reforming the urban and rural financial management system; establishing and improving the coverage of the public finance system in rural areas; improving the education, health care, pension and other public service systems; reforming the rural financial system and the household registration system , etc