In the first three quarters of 2020，the general public budget revenue decreased by 6.24% and the general public budget expenditure decreased by 1.92% due to the combined effect of COVID-19 and domestic and foreign complex economic factors. The fiscal situation is rather grim. With the effective prevention and control of the epidemic，fiscal revenue began to increase in June，and the fiscal situation has generally improved. Non-tax revenue and land transfer revenue play a hedging role in the decline of tax revenue，promoting the government fiscal operation. The improvement of fiscal deficit to GDP ratio and the innovation of fiscal policy implementation ensure the effective operation of proactive fiscal policy. Fiscal revenue is still under great pressure in 2021，and the expansion trend of fiscal expenditure remains unchanged. In 2021，China should still implement a proactive fiscal policy，and the fiscal deficit ratio could be set at about 4%. China should pay attention to improving the cross-cycle design and adjustment of macro-control to make proactive fiscal policy more effective. The coordination between fiscal policy selection and fiscal and tax reform should be strengthened. China should attach great importance to local debt risks to promote sound financial operation. To deal with the risk of population aging to do a good job in the government financial reserve.