| As the product of economic and social development, urbanization is an important indicator ofone country's modernization and a concerned issue in China nowadays. It was the "2001——2002China Urban Development Report" that began to report on the subject of Chinese urbanization cost, and concluded that the government should pay the cost of urbanization at the price of 10,500/p. As the development of urbanization, the analysis of the urbanization and the government financial expenditure in-depth will not only have the theoretical value, but also have practical significance to the economic and social development.There are five main parts in the paper. Firstly, introduce the proposal and significance of the issue, the purpose of the study and the data sources briefly; secondly, review the theory of urbanization, then to sort and comment the existing studies on urbanization and government financial expenditure both in China and abroad; thirdly, establish the theoretical framework, and to focus on the impact of urbanization which financial expenditure and the government's policy put on; the fourth part is about the empirical analysis of Hangzhou city, have a comprehensive evaluation on the level of urbanization in Hangzhou at first, then to build models with SPSS, quantitatively analyze the government financial expenditure, the government's policies and the urbanization; Finally, make some suggestions for furthering the level of urbanization of Hangzhou city.Study shows that both of the government financial expenditure and the government's policies have a positive correlation with urbanization, and can promote the process of urbanization actively, especially the government financial expenditure. The paper suggests that government should increase financial expenditure for the purpose of development of urbanization, and we also should develop the tertiary industry, adjust the structure of employment and implement system of innovation aiming at promoting the development of the urbanization.
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