| The capacity utilization rate of overall industrial is 78.7% in 2015, a lower level in the past four years lower level. Current overcapacity is still more prominent, and it still needs a longer period of time to return to normal of capacity utilization for the vast majority of firms.Central Economic Work Conference held in December 2015, the General Secretary XiJinping pointed out that under the new normal economic development, arduous task of structural reforms, including five short board taskmainly in de-production, de-stocking, deleveraging,lower costs. 2016 government work report pointed that we should make efforts to resolve excess capacity and cost efficiency. In this context,we research fiscal policy to the overcapacity in this thesis. The main contents of this paper are:The first part is an introduction, introduces the research background and significance,ideas and methods, as well as a review of researches on definition of overcapacity and the causes.The second part is the basic theory of over-capacity. Firstly, the meaning of overcapacity and de-capacity; Secondly, fiscal policy to resolve the overcapacity theory, including the theory of externality, market clearing theory, theory of social reproduction and the like;Finally, fiscal policy mechanisms to resolve the overcapacity, including the revenue and expenditure.The third part is to produce financial policy of international experience to resolve excess capacity. Showing the fiscal policies and their effects to resolve the overcapacity of the United States, Germany and other countries.The fourth part of this paper to produce financial policy of national experience to resolve excess capacity. It’s first introduce the main distribution of industry overcapacity,including industries as steel, cement, plate glass, coal chemical industry and other traditional industries as well as polysilicon, wind power equipment, and focus on resource-intensive regions and cities. This article analyzes the causes of overcapacity, including excessive investment behavior of enterprises, low barriers to entry and high exit barriers, protectionist practices of local governments, grass-roots financial difficulties, the economic development model ofextensive wait. Then showing the basic situation of overcapacity that appear on our history and fiscal policy to resolve the overcapacity, especially in 1998 and since 2008.The fifth part of this paper is the most important part, that fiscal policy recommendations to resolve excess capacity, including financial income policy, expenditure policy, deepenfiscal and tax reform, etc., and then broke down into tax incentives, financial subsidies, industry leading fund, rational division of powers between the government and expenditure responsibilities, special funds to protect people’s livelihood and other specific fiscal policy recommendations. |
