English: fiscal equalisation

Part of speech

Verb

Definition

Fiscal equalisation is a transfer of fiscal resources across jurisdictions with the aim of offsetting differences in revenue raising capacity or public service cost. Its principal objective is to allow sub-central governments to provide their citizens with similar sets of public services at a similar tax burden even if incomes differ across areas.

Context

Mae’r OECD hefyd yn tynnu sylw at bwysigrwydd cydraddoli cyllidol a rôl proses gydraddoli gyllidol glir ochr yn ochr â datganoli cyllidol.