Financial policy; General information

From the municipalities to the states and the federal government to Europe: quite different levels are responsible for legislation and administration. All of them have their own budgets. Nevertheless, a lot of money is moved between these different levels.


Bavaria advocates a simple, federal and fair fiscal policy at all levels of government that is also transparent to the citizen. With this goal in mind, the Ministry of Finance is constantly working to improve the financial constitution and federal-state financial relations, as well as the fiscal equalization within Bavaria, in the interest of providing adequate financial resources for Bavarian municipalities. The past federalism reforms have paved the way for a future-proof realignment of the federal structure. An important milestone in this process was, for example, the inclusion of the debt brake in the Basic Law in order to stop the mountain of debt from growing in the interests of future generations. As part of this ongoing process of review and development, the agreed reorganization of federal-state financial relations from 2020 onward represents an extensive reform which, in addition to financial issues in the narrower sense, has also readjusted other key aspects of the interaction between the federal and state governments. For more information, please refer to the website of the Bavarian State Ministry of Finance and Home Affairs (see "Further links").


Responsible for editing:Bayerisches Staatsministerium der Finanzen und für Heimat

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