The integration of urban and rural areas is an inevitable trend and an internal requirement to break the dual economic structure of urban and rural areas and to build a new type of urban-rural relations. Jiangsu province gives full play to the driving and guiding role of fiscal policy in urban and rural integration and the rate of urbanization has been increasing steadily. New progress has been made in urban and rural integration，including industrial development，infrastructure，public services，employment，social security and social management. In order to further improve the fiscal policy and promote the integration of urban and rural areas through better use of fiscal policy in Jiangsu Province，urban and rural development planning should be based on the fiscal revenue to ensure the feasibility of planning；we should stabilize local tax sources and increase local government revenue；we should improve land use and benefit distribution system，optimize the structure of government income；we should integrate agriculture related special funds and give full play to the scale advantages of financial funds in support of urban and rural integration development；we should establish and improve the financial transfer payment system and balance regional finance；we should play the role of cost sharing of fiscal expenditure in the process of transferring peasants’ citizenship under the principle of people-oriented；we should establish and strengthen financial supervision and long-term accountability mechanisms.