Research on Fiscal Thought and Practice of Deng,Siao-Ping Cai,Ding-Nan Abstract To utilize the Document Analysis Method and the Historical Study Method, I research and detect the sources of Deng, Siao-Ping¡¦s fiscal thought to conclude as follows. 1. Derive from the Dialectical Materialism and the Historical Materialism. 2. Derive from one¡¦s own specific times background. 3. Derive from the Productive Forces Theory of Marxism. 4. Derive from the Communist Manifesto and the Communism ABC. I conclude the major principles of Deng, Siao-Ping¡¦s fiscal thought as follows. 1. The principle of avoiding polarization. 2. The principle of freedom. 3. The principle of developing productive forces. 4. The principle of reform and open policy. 5. The principle of advocating industry and opposing waste. Deng, Siao-Ping was the most major policy-maker during 1979¡ã1997, and he controlled the fate of China. The study object of this essay is Chinese fiscal revenue and expenditure during 1979¡ã1997. The coefficient of elasticity of Chinese fiscal revenue was 0.46 during 1979¡ã1988. Comparing that with modern fiscal system of other countries, and we can conclude that Chinese Finance Contract System was a defective fiscal system. Since practicing the Tax Distribution System, the coefficient of elasticity of Chinese fiscal revenue was rising from 1996. The Chinese fiscal revenue ability was 1.2 in 1996 and 2.0 in 2002. The average of coefficient of Chinese fiscal revenue was 0.66 during1979¡ã1997. This value was low, and that said that the Chinese fiscal revenue ability during this period was low. The proportion of Chinese fiscal expenditure to GDP was 31.7¢M in 1979 and 11.6¢M in 1997. It said that the fiscal expenditure reform fell behind. In fiscal expenditure management¡A the budget was not rigorous and the supervision of expenditure was not serious. Three reforms (the department budget, the national treasury centralism and the government purchase system) could not produce a marked effect of fiscal expenditure. It is the core problem of fiscal expenditure how to pursue the maximum of society benefit of fiscal expenditure. The average of coefficient of elasticity of Chinese fiscal expenditure was 0.76 during 1979¡ã1997. The value was low, and that said that the Chinese fiscal expenditure ability was low. The key of government life and development is the fiscal ability. If the fiscal revenue ability decreases, the economic control ability will decrease. This will occur economic crisis and social turbulence. Finally, the national total ability will decrease. Therefore, the government economic ability depends on the ability of the government to centralize and dominate the social treasury. Taiwan has potential crisis. Chinese economy and Taiwan economy have an influence on each other. If Chinese economy develops quickly, Taiwan will be the maximum beneficiary. But, Chinese economy has a lot of invisible crises under the quick development. For example, Chinese national enterprises do not achieve much and the gap between the rich and the poor enlarges, etc. If Chinese economic crisis breaks out, Taiwan will be a fish out of water. Therefore, it is due to pay attention to and to work on the change of Chinese finance.