What does equalization payments mean?
Definitions for equalization payments
equal·iza·tion pay·ments
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Wikipedia
Equalization payments
Equalization payments are cash payments made in some federal systems of government from the federal government to subnational governments with the objective of offsetting differences in available revenue or in the cost of providing services. Many federations use fiscal equalisation to reduce the inequalities in the fiscal capacities of sub-national governments arising from the differences in their geography, demography, natural endowments and economies. The level of equalisation sought can vary, however. The payments are generally calculated based on the magnitude of the subnational "fiscal gap": essentially the difference between fiscal need and fiscal capacity. Fiscal capacity and fiscal need are not equivalent to measures of fiscal revenue and expenditure, as making them so would induce perverse incentives to subnational governments to reduce fiscal effort.
Numerology
Chaldean Numerology
The numerical value of equalization payments in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of equalization payments in Pythagorean Numerology is: 2
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"equalization payments." Definitions.net. STANDS4 LLC, 2024. Web. 3 May 2024. <https://www.definitions.net/definition/equalization+payments>.
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