China's economic slowdown has led to a decline in fiscal revenue growth. ANBOUND think tank scholars state that fiscal reduction will become next stage’s New Normal in China’s economy. Therefore, governments of all levels should make full preparations for this. It’s not advisable to pursue a one-sided fiscal growth and use up all the available resources. However, it’s of significance to transform the way of thinking, improve the governmental behavior and attract private capital through reform, in order to realize the government’s withdrawal from competitive areas. Only by reducing both scale and expenditure and improving the efficiency can the local governments adjust to the trend of decreased fiscal revenue.