BEIJING (Reuters) - China will use proactive fiscal policies to reduce overcapacity in industry and to help firms restructure their debt, the country's finance minister said in a report issued on Friday.

China will step up regulation of local government debt, especially oversight of debt quotas, Lou Jiwei said in a report to the country's parliament, published on the ministry's website. Lou also said the country will accelerate reform of its tax system.

(Reporting by Beijing Monitoring Desk; Editing by Simon Cameron-Moore)