Abstract: Through constructing an income distribution risk index system of fiscal expenditure and using China’s 1985—2008 data for empirical research, this article finds income distribution risk levels of fiscal expenditure are relatively low in China, but there are gradually increasing tendencies, and the risk mainly comes from the present situation of income gap and macroeconomic environment indicators. On this basis, using an order probit method to analyze influences of fiscal expenditure’s main items on income distribution risk degrees, the main conclusions are: to increase the proportion of expenditure on agriculture can help to reduce the risk of income distribution; to increase the share of expenditure on education, health care and social security will increase the risk of income distribution; expenditures on industries, communications and national defense have significant roles in promoting the income distribution situation; expenditures on infrastructure, administration and subsidies can reduce the income distribution risk, but the effect is not obvious.