Abstract: The public finance in terms of revenue,expenditure and management,has significantly different institutional arrangements in urban and rural areas of China. Dual finance as the composition of binary economy system was formed in the specific historical period after the founding. It experienced the three stages of the planned economy period, the market economy transition period, and people's livelihood fiscal period. Through measuring the dualistic financial strength,it is discovered that dual finance appeared better and worse alternately in the first two stages,binary fiscal improving is the main trend in the third stage. At present,binary finance has new characteristics. The direction of the reform is to realize the equal basic public services between urban and rural areas. The problem of dual finance has to be solved by reasonable fiscal decentralization,coordination of regional differences,increasing the intensity of supporting agriculture,standardizing government behaviors and breaking the barriers of urban and rural dual structure fundamentally.