Morozova, O.S., Gracheva, E.Y. Financial and legal regulation of inter-budgetary relations in the Federal Republic of Germany.

Abstract: This article is devoted to the topical issues of financial and legal regulation of inter-budgetary relations in the Federal Republic of Germany. The article includes analysis of the financial levelingoff as one of the central institutions in the budget law of the FRG. Special attention is paid to vertical and horizontal mechanisms of financial leveling-off among the budget potentials of the federal lands. Financial leveling-off is understood as distribution of authority, income and spending among the various levels of government in a state. Financial leveling-off is a complicated multi-stage process, and each of its stages has its own specific features. The article contains a conclusion on the need to combine horizontal and vertical mechanisms for the financial leveling-off. The final goal of the financial leveling-off is to provide all the budget system levels with the due amount of finances needed to implement their goals, and it may be achieved thanks to the multi-stage character of financial leveling-off. The authors also pay attention to the detailed normative legal regulation of financial leveling-off in the Federal Republic of Germany, including the level of the Basic Law of the FRG.

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