Intergovernmental fiscal relations

Income resulting from Intergovernmental fiscal relations - Federal Government

2020
51.6 bn euro
Sunk -14 % vs. prior year

Income resulting from Intergovernmental fiscal relations - States incl. Vienna

2020
33.2 bn euro
Sunk -5 % vs. prior year

Income resulting from Intergovernmental fiscal relations - Municipalities

2020
12 bn euro
Sunk -2 % vs. prior year

Description

The financial equalisation comprises cost bearing rules, distribution of taxing powers, tax sharing and transfers between the federal government (Bund), the states (Länder) and the municipalities (Gemeinden). The main provisions for this are regulated in the Intergovernmental Fiscal Relations Act (IFRA), currently in the IFRA 2017 for the period 2017 to 2023.

For taxation powers, a distinction is made between exclusive taxes and shared taxes. Before the shared federal taxes are allocated, specific amounts that are stipulated by law are deducted first. The allocation to the individual authorities depends on formulas laid down in IFRA. For almost all taxes the same standard formula is used. 12.8 % of the municipalities’ shares are deducted and transferred to states for granting payments for special requirements to municipalities and associations of local authorities.

Graphs, Tables, Maps

Highlights

Payments according to intergovernmental fiscal relations, 2020 and 2019, in thousand euro (Table)

S: STATISTICS AUSTRIA, Ministry of Finance. Created on 14 January 2022.

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