The System for Equalising Finances between Local Authorities in Sweden

Jonason, Patricia

The System for Equalising Finances between Local Authorities in Sweden - 2016.


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To make up for territorial disparities impacting upon municipalities’ financial capacity, Sweden has set up an equalisation system which comprises five strands. The two principal ones are the redistribution of income and the equalisation of costs. The others concern grants for infrastructure, grants for input costs, and an accrual account. Each of these components is divided between a specific system for the municipalities and a specific system for the counties. The system makes it possible to reconcile significant local autonomy with equal access to the same level of service for all citizens.

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