This　study　takes　China,　which　is　going　through　severe　and　unbalanced　fiscal　pressure,　as　the　research　object,　using　the　Need-Capacity　Gap　method　to　evaluate　the　fiscal　condition　of　284　Chinese　regions　at　prefecture　level　and　above　in　2000,　2010,　and　2020,　and　further　analyzes　the　changes　in　the　fiscal　disparities.　The　fiscal　disparities　of　Chinese　prefectures　have　generally　shown　a　differentiation　trend　in　the　past　20　years,　which　is　manifested　in　the　continuous　optimization　of　the　areas　with　good　fiscal　conditions　and　the　deterioration　of　the　areas　with　poor　fiscal　conditions.　The　differentiation　of　regional　fiscal　conditions　not　only　exists　at　the　national　level,　but　is　also　prevalent　between　and　within　different　regions,　between　and　within　prefectures　of　different　administrative　class,　and　between　and　within　prefectures　of　different　urbanization　levels.　Differences　in　revenue　raising　capacity　are　the　main　driver　of　fiscal　divergence,　and　the　contribution　of　revenues　to　fiscal　disparities　has　been　increasing　over　time.　Finally,　the　study　provides　a　discussion　on　the　relationship　between　fiscal　disparities　and　regional　inequality　and　the　role　of　transfers　in　reducing　fiscal　disparities.