Fiscal Consolidation is one of the important measures for the emergency response of local government debt risk events,and it is also an important part of the government debt management mechanism and the long-term mechanism of debt risk prevention and resolution.Under the requirement of coordinating the local debt risk resolution and stable development,the Fiscal Consolidation system should take into account the use of fiscal policy means in the construction of the risk financial system,the convergence of debt rules under the guidance of balance of payments,and the emergency fiscal consolidation for the purpose of debt sustainability under the emergency state.It is necessary to clarify the institutional logic as the prerequisite for the institutional optimization of Fiscal Consolidation. Subsequently,the institutional value of Fiscal Consolidation should be highlighted through optimized design,and the multi-dimensional value of Fiscal Consolidation should be encompassed through the improvement of the fiscal management system,thereby achieving the institutional optimization of Fiscal Consolidation.