An Empirical Study On The Fiscal Policy Of Improving The Real Estate Market

The real estate industry, closely related with the national economy, not only is regarded as the basic industry but also plays an important role as the forerunner and the pillar industry. The fluctuation of the real estate market may have an enormous impact on the national economic development as a whole. Generally speaking, China's real estate industry has gone through a steady development from the start in 1980s to the gradual progress in 1990s and finally to the rapid advance after entering the 21st century. Namely, though China's real estate industry has a short history, the recent several years have witnessed an almost explosive growth which has caused severe damage to the national economic development. The investment fever in the real estate industry has led to the rocketing housing prices, the increase of vacancies and the imbalanced structure of supply and demand in domestic market. Therefore, the emergent task of China's macro-management of the real estate market is to find out a solution to control the market and prevent the fluctuation and capital overstock within it, so that the real estate market can embrace a sustaining development in a stable and healthy environment.Under the situation of macro economy, this thesis, which is based upon the theory of the real estate economy, lays the emphasis on the adjusting control of fiscal policy. The author proposes the necessity of controlling the real estate market based on the theoretical basis of involving fiscal policy in the control of the real estate market which includes the market failure theory and public policy theory. Furthermore, the function and efficiency of fiscal policy in controlling the real estate market is discussed in the thesis from the perspectives of financial revenue and expenditure. The author also clarifies the content and result of Chinese government implementing fiscal policy to control the real estate market from 1993 up till now. Ever since the real estate industry springs up in China, the government has carried out many policies to control and stabilize the housing market and has achieved certain results. However, there still remain a lot of problems to solve, e.g. high land costs, rocketing housing prices, dissatisfying housing supply, high vacancy rate and disordered market, etc. All these problems have become the barrier for the development of the macro economy. Lacking effective fiscal policy in controlling the real estate market is one of the reasons that cause the lopsided development of the real estate market. From the perspective of financial revenue policy, the problems lie in the deficiency of land financial policy, the unscientific tax system and the disordered administration charge system. From the perspective of financial expenditure policy, the problems are the housing investment fever and deficient housing security system, which have obstructed the benign development of the real estate market in China.Concerning the problems of deficient fiscal policy on the real estate market and drawing lessons from the successful experiences of other countries, the thesis proposes the strategies and tactics to perfect the fiscal policy on the real estate market in China:first of all, to modify the application of land costs management and improve the land leasing methods; secondly, to design a new tax system and charge the property tax; thirdly, to clear up the fee items and put them in order; fourthly, to continue the government-subsidized housing project. The focus is on the coordination of financial revenue and expenditure so as to hold back the rocketing increase of housing prices, fulfill people's fundamental demand for a shelter and to promote the sustaining development of the real estate market in a stable and healthy environment.