China's economy will continue to face downside risks in 2016, while China will intensify the implementation of active fiscal policy with the highest budget deficit this year. It is uncertain that the impact of the active policy on our country’s economic development .On the one hand, it can well solve the problem of insufficient effective demand. But in the long run it will bring great financial pressure to the government. Therefore, we will explore the factors that affect our budget deficit based on the way to make up for it. Furthermore, we will use the Vector Error Correction Model to analyze the impact of China's fiscal deficit policy in the long run and short range, and then put forward the corresponding recommendations.