Financial equalization

from Wikipedia, the free encyclopedia

Revenue sharing a is the financial system , the government revenue and public expenditure between different NUTS planes within a state or revenue and expenditure or between organizations ( churches , health insurance companies , broadcasting stations ) according to a fixed allocation system distributed.

species

The horizontal financial equalization takes place between subordinate states ( states , states , provinces , regions or municipalities ), the vertical one is a redistribution from top ( central government ) to bottom (municipalities). While horizontal financial equalization corresponds to the model of cooperative federalism , vertical financial equalization leads to greater competition within the federal system.

The most important financial equalization takes place between the regional authorities of a state ( English intergovernmental fiscal relations , French partage des compétences ), whereby the distribution of state revenues represents an active financial equalization and the distribution of the tasks a passive financial equalization.

Distribution examples

Subject-related examples
National full compensation

Systems for equal financial distribution.

National partial adjustment

Systems that reduce distribution inequality:

National compensation (uncategorized)

Individual evidence

  1. Tanja Kirn, Incentive Effects of Financial Equalization Systems , 2010, p. 2
  2. Willi Albers (Ed.), Handwörterbuch der Wirtschaftswwissenschaft , Volume 2, 1980, p. 608