Federal states: State financial equalization: five payers and eleven recipients

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Federal states
State financial equalization: five contributors and eleven recipients

The aim of the state financial equalization is to ensure almost equal living conditions in Germany. photo

© Jens Wolf/dpa

In 2023, 18.3 billion euros were redistributed in Germany as part of the state financial equalization. Bavaria once again paid in the most money – around 9.1 billion euros.

As part of the Last year, around 18.3 billion euros were redistributed in Germany through state financial equalization. The depositors were Bavaria, Baden-Württemberg, Hesse, Hamburg and Rhineland-Palatinate. The other eleven federal states received money from the pot. This emerges from a template from the Federal Ministry of Finance, which the “Handelsblatt” reports on and which is also available to the German Press Agency.

Accordingly, Bavaria once again paid in the most money – around 9.1 billion euros. This was followed by Baden-Württemberg (around 4.5 billion euros) and Hesse (around 3.4 billion euros). Hamburg gave around 934 million euros, Rhineland-Palatinate around 320 million euros. Berlin remained the largest recipient country with around 3.8 billion euros, ahead of Saxony (around 3.4 billion).

The state financial equalization redistributes money between financially strong and financially weak countries and is intended to ensure almost equal living conditions in Germany. Bavaria filed a lawsuit against the state financial equalization with the Federal Constitutional Court in 2023 because it had been paying in the most money for years.

dpa

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