Transfer Relations in the Federal State

  • Helfried Bauer
  • Peter Biwald
  • Karoline Mitterer (KDZ)
  • Johann Bröthaler
  • Michael Getzner (Vienna University of Technology)
  • Margit Schratzenstaller (WIFO)

Intragovernmental transfers are an important element of the fiscal equalisation system. With respect to efficiency, the principle of fiscal equivalence or fiscal connectivity is central to the arrangement of fiscal relations between the individual levels of a federal state. Based on this principle, tasks, spending and revenue responsibilities should fundamentally be in accordance, and the cost and structural efficiency of the fulfilment of tasks should be expected.