Abstract: Common prosperity is the essential requirement of socialism and an important feature of the Chinese-style modernization.Currently,Chinas pursuit of common prosperity faces the dual challenges of insufficient and uneven development.As the foundation and important pillar of national governance,public finance must address the key and difficult issues in the new round of fiscal and taxation institution reform.To address the shortcomings of the current fiscal institution,the new round of fiscal and taxation institution reform must focus on optimizing the tax institution,strengthening the performance management of government expenditures,rationalizing fiscal relations between the central government and the local governments,and improving the budgetary performance management of state-owned capital operations etc.,in order to solidify the institutional foundation for effectively promoting common prosperity.

Key words: common prosperity, economic development, fiscal and tax institution, the relationship between the central government and the local governments