Accompanying the changes of macro economic environments,the basic orientation of China's fiscal policy will be turned from a proactive one to a sound one (or a neutral one) starting in 2005. However,after the seven-year practice of the proactive fiscal policy,combined with the limitation of a series of flaws in the system,the operation of the turning would be extremely difficult. Although the drastic changes in situation brought about the breaking through of the sound fiscal policy,the current conditions leave only a little room for its operation. Thereby,a sound fiscal policy would forge ahead gradually rather than accomplish in one action. In this process,advancing reforms should be main clue of all possible measures to be adopted. The reform of tax system,the reform of social security system and the reform in rural area should be the focuses of the sound fiscal policy.