As China’s economy enters the new normal, fiscal income decrease leads to the increase of social assistance fund, and down turn of economy and structural adjustment result in high risk of unemployment and poverty for low and middle income group. Changing economic growth model sets higher requirements in the respective of increasing human capital input to impoverished population and enhancing consumption capability for low and middle income group. At present, absolute poverty is alleviated but expenditure-based poverty grows and social assistance system is urgent to transform and upgrade. There is high profit of fiscal capital for social assistance, but the input structure is imbalanced and effect is diminishing for the growth of population in aid. Each social assistance policy is bound with subsistence allowances in practice, which cause problems such as assistance projects superposition and welfare dependence. The policy should go in the direction of making assistance forward to strengthen risk prevent capability of social assistance; social assistance service should be explored positively to improve social assistance system; government purchase service should be accelerated to advance the innovation of social assistance management service; target people affirmation and demand evaluation system should be improved to promote the accuracy of assistance; the relationship of social assistance authority and fiscal expenditure should be clarified to adjust capital expenditure structure and to establish growth mechanism of fiscal input based on demandoriented assistance.