| In order to solve the conflicts between comprehensive urbanization process and high local government debts, China has fully implemented the PPP mode since 2015.A series of documents were introduced to regularize the development of PPP mode, hoping to take advantages of PPP mode reasonably and properly. However, considering the new developing stage of PPP mode, instead of encouraging without doubt, Chinese government clearly put forward to join a demonstration on fiscal capacity in the PPP projects’ preliminary studies, which was a significant step for the development of PPP mode in China. And the article intended to find out whether it was suitable or not.Compared to the lacking database of PPP mode in China, UK has more plentiful PPP experiences and project database. So the article took it as an example and studied the implicit considerations of fiscal capacity based on PPP mode. It compiled debt data of PPP project to reflect the fiscal capacity. Using logical positivism, a linear regression relationship among macroeconomic indicators, total PPP capital value and the debt was established. And the conclusion came out that the PPP size was limited every year in UK and move together with macro environment. In order to truly reduce government debt and to improve the quality of public service, some advices on how to limit China’s PPP size to fiscal capacity were put forward. |
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