federal financial equalization (Länderfinanzausgleich)
E459839
Federal financial equalization (Länderfinanzausgleich) is Germany’s system of redistributing tax revenues among the federal states to reduce regional fiscal disparities and ensure comparable living conditions nationwide.
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
fiscal equalization system
ⓘ
intergovernmental transfer mechanism ⓘ |
| administeredBy |
Länder finance ministries
NERFINISHED
ⓘ
federal government of Germany NERFINISHED ⓘ |
| affectedBy |
German reunification
ⓘ
Solidarity Pact NERFINISHED ⓘ |
| aimsToProtect | budgetary autonomy of Länder ⓘ |
| aimsToSupport | public services in weaker regions ⓘ |
| appliesTo |
German federal states
ⓘ
Länder ⓘ |
| appliesWithin | territory of the Federal Republic of Germany ⓘ |
| beneficiary | financially weaker Länder ⓘ |
| componentOf | German federal fiscal system ⓘ |
| controversy |
constitutional court challenges
ⓘ
disputes between donor and recipient states ⓘ |
| country | Germany NERFINISHED ⓘ |
| evaluationCriterion |
population of Länder
ⓘ
tax capacity per capita of Länder ⓘ |
| goal |
horizontal equity between Länder
ⓘ
solidarity among German states ⓘ |
| includesMechanism |
horizontal transfers between Länder
ⓘ
supplementary federal grants ⓘ vertical transfers from federation to Länder ⓘ |
| introduced | 1950 ⓘ |
| involvesLevelOfGovernment |
federal government
ⓘ
state governments ⓘ |
| language | German ⓘ |
| legalBasis |
German Basic Law
NERFINISHED
ⓘ
Grundgesetz Article 107 NERFINISHED ⓘ |
| nativeLabel | Länderfinanzausgleich NERFINISHED ⓘ |
| payer | financially stronger Länder ⓘ |
| purpose |
ensure comparable living conditions nationwide
ⓘ
redistribute tax revenues among federal states ⓘ reduce regional fiscal disparities ⓘ |
| reformed |
1969
ⓘ
1995 ⓘ 2001 ⓘ 2020 ⓘ |
| relatedTo |
Bund-Länder financial relations
NERFINISHED
ⓘ
German federalism NERFINISHED ⓘ German tax sharing system ⓘ |
| timeFrame | annual calculation ⓘ |
| usesRevenueFrom |
corporation tax
ⓘ
income tax ⓘ value-added tax ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.
Federal Ministry of Finance
→
responsibleFor
→
federal financial equalization (Länderfinanzausgleich)
ⓘ