Equalization payments

In finance we define the financial compensation generally considered the division of tasks, revenue and expenditure between and within the different levels of government. The output distribution is referred to as a passive financial compensation and the income distribution as an active financial compensation. During active financial compensation you make a distinction between the primary active financial compensation ( the distribution of taxes and fees) and the secondary active financial compensation (subsequent income - redistribution systems).

The most common use in general usage in Germany, the term for the financial equalization.

Examples of financial equalization systems

  • Länderfinanzausgleich
  • European Financial compensation: income and financing system of the EU, distribution of tasks between the EU and Member States
  • Cohesion policy in the European Union
  • German fiscal equalization: to distinguish are vertical fiscal equalization through revenue sharing between the federal, state and local, as well as the horizontal fiscal equalization within the country level (so-called financial equalization ) in accordance with Article 104 a - 107 GG
  • Financial compensation ( France)
  • Austrian financial compensation: regulation of the allocation of resources from the state to the individual authorities
  • Swiss financial compensation: financial compensation ( see also new financial equalization) between the Confederation and the cantons, cantons and municipalities under
  • Local fiscal equalization: tax allocation to the municipalities within the Federal countries
  • Risk adjustment: revenue correction between health insurance
  • Financial balance between the country's stations of the ARD
  • Financial balance between the member churches of the EKD
  • Financial compensation for alternative schools under Article 7, paragraph 4 of the Constitution
Public finance Redistribution of income and wealth Municipality
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