The literature related to public expenditure policy for poverty reduction is mainly focused on the mechanism of publicexpenditure on poverty, poverty reduction intervention of public expenditure,poverty reduction effect of public expenditure policy, public expenditure beneficial owners, etc. Through the study of literature in this field,this paper finds,inrecent years,spatial economic analysis of poverty reduction of public expenditure policy has become the latest development of thisfield. Specific macroeconomic policy should be associated with specific regional space. Macroeconomic policy without spaceelements doesn't exist. An important reason of inefficiency and failure in the analysis of public expenditure policy of poverty reduction is that factors of space areignored. Based on these, the author puts forward the concept of space in the study ofpublic expenditure policy of poverty reduction, explaining the space effect mechanism of public expenditure policy of povertyreduction, screening and inspecting on public expenditure policy of poverty reduction, and correcting mistakes in element spaceconfiguration so as to achieve economic space optimization, and get dynamic poverty reduction revenues.