This　paper　uses　additive　non-parametric　model　to　study　the　linear　and　nonlinear　relation　between　china＇s　fiscal　expenditure　structure　and　urban-rural　income　gap.　The　result　shows　that　the　structure　of　fiscal　expenditure　has　a　significant　linear　and　nonlinear　impact　on　income　gap　between　urban-rural　residents,　but　different　item　of　fiscal　expenditure　takes　a　different　impact.　Finally,　this　paper　proposed　some　suggestions　to　reduce　the　gap　between　urban　and　rural　residents.