Comprehensively expanding domestic demand is the top priority of the “dual circulation strategy ” new development pattern, and government transfer payment is an important policy tool to boost the potential of public consumption. Based on the “income effect” and “redistribution effect” of government transfer payment in theory, the rural sample data of CFPS from 2014 to 2018 are selected to empirically test the influence of government transfer payment on the total amount and structure of micro individual consumption. It is found that government transfer payment promotes the increase of household consumption expenditure, but this positive effect is not obvious in the central and western regions. Over reliance on transfer payment is not conducive to the improvement of household consumption level, and there is an “inverted U shaped” relationship between them, and transfer payment is more likely to have a negative impact on consumption in the eastern region; government transfer payment mainly increases household expenditure on the development of enjoyable consumption, and promotes the optimization and upgrading of consumption structure.