Municipalities are very dependent on the central government for their income, and the notion of equality receives a great deal of attention in the distribution of these central resources. There is not much room for municipalities to levy their own taxes. This situation is a result of long-established, often unconscious principles. These are expressed most clearly in the Grants to Municipal Authorities Act of 1997. Many far‑reaching administrative, social and economic developments have occurred since then, providing sufficient reason to take a look at these principles again.
Against the backdrop of these developments, the Financial Relations Council wants to explore with you in this discussion paper new directions for principles by which municipalities can continue to fund their tasks in the future.