German word

Finanzausgleich

Pronunciation

IPA/fɪˈnantsˌaʊ̯sglaɪ̯ç/

Meaning

  • masculine nounfiscal equalization

Example

Der Finanzausgleich sorgt dafür, dass arme Gemeinden mehr Geld bekommen.

Fiscal equalization ensures that poor municipalities receive more money.

Illustration for Finanzausgleich (fiscal equalization)

More examples

Die Debatte um den Finanzausgleich betrifft oft Fragen der Solidarität.

The debate over fiscal equalization often concerns questions of solidarity.

Core concept

A national pool smooths uneven tax capacity among different levels of government.

Common phrases

  • solidarischer Finanzausgleich

    solidarity-based fiscal equalization

  • überregionaler Finanzausgleich

    interregional fiscal equalization

Similar words

Bund-Länder-Finanzausgleich: A system for sharing funds between Germany's federal government and its states.
Länderfinanzausgleich: A system that redistributes tax revenue among Germany's states.
Zuweisung: Public funds allocated by a higher level of government to a local authority or purpose.
Zuschuss: Nonrepayable public funding for a specific project or local authority.

Definition in German

Finanzausgleich ist die staatliche Regelung zur Verteilung von Mitteln zwischen Bund, Ländern oder Gemeinden, um finanzielle Ungleichheiten auszugleichen.

Word origin

Finanzausgleich is a transparent German compound of Finanz and Ausgleich, whose base verb ausgleichen means to balance, offset, or compensate.

Usage tips

  • Finanzausgleich denotes an organized public-finance arrangement, whereas Ausgleich alone also refers to compensation or balancing in everyday contexts.

Other meanings

  • fiscal transfersnoun
  • fiscal redistributionnoun

Opposites

  • Leistungsprinzipperformance principlenoun

Related words

  • Finanzausgleichsreformfiscal equalization reformnoun
  • Finanzausgleichsgesetzfiscal equalization lawnoun

Word lists with this word