The quality of local fiscal revenue essentially reflects the quality and efficiency of economic development, and the study of fiscal revenue quality is the proper meaning of promoting the realization of high-quality economic development and building a modern fiscal system that adapts to the modernization of the national governance system and governance capacity. Based on the panel data of 277 prefecture-level cities in China from 2010 to 2023, this paper empirically analyzes the impact and mechanism of digital economy on the quality of local fiscal revenue, and finds that the development of digital economy can not only significantly improve the quality of local fiscal revenue, but also produce spatial spillover effects on the quality of fiscal revenue of neighboring governments. Mechanism analysis shows that scale effect, industrial structure optimization and tax governance capacity improvement are important channels for the digital economy to affect the quality of local fiscal revenue. Heterogeneity analysis shows that the enabling effect of digital economy is more significant in regions with developed economy, high government efficiency, strong tax collection ability and strong innovation ability. The threshold test shows that the impact of digital economy on the quality of local fiscal revenue has significant nonlinear characteristics, and its impact shows an increasing trend of marginal effect with the improvement of the level of digital economy and the degree of fiscal decentralization. Based on this, this paper puts forward some suggestions and countermeasures from the aspects of optimizing the allocation of data resources, promoting the digital transformation of the industry, strengthening the management of budget revenue and expenditure, and deepening the reform of the fiscal system.

Digital Economy, Quality of Fiscal Revenue, Fiscal Decentralization, Threshold Characteristics, Spatial Spillover Effects