#BGBl. 2026 I Nr. 92First Ordinance Implementing the Financial Equalization Act for Equalization Year 2026
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This ordinance, issued by the Federal Ministry of Finance on 27 March 2026 and published in the Federal Law Gazette (BGBl. 2026 I Nr. 92) on 1 April 2026, implements the Financial Equalization Act (Finanzausgleichsgesetz) for the equalization year 2026. It establishes the specific calculation bases, transfer amounts, and distribution parameters governing fiscal equalization between the German federal government and the 16 federal states (Länder). The ordinance sets the preliminary figures for horizontal fiscal equalization (Länderfinanzausgleich), determining which states are net contributors and which are net recipients based on their respective tax revenues and fiscal capacity. Wealthier states such as Bavaria, Baden-Württemberg, Hesse, and Hamburg typically transfer funds to fiscally weaker states including the eastern German Länder and Bremen. As an annual implementation ordinance, it operationalizes the structural framework of the Finanzausgleichsgesetz by inserting year-specific revenue data, population figures, and equalization indices for 2026. The Federal Ministry of Finance holds lead responsibility (Federführung) and coordinates the calculations with all state governments. The regulation falls under subject classification 603-9-57-1 (fiscal equalization between federal and state governments) and is binding on both federal and state fiscal authorities for the duration of the equalization year.
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Key Changes
- Sets the operative calculation bases and equalization indices for the fiscal year 2026 under the Finanzausgleichsgesetz framework
- Establishes preliminary transfer amounts between contributor states (e.g., Bavaria, Baden-Württemberg, Hesse, Hamburg) and recipient states for 2026
- Incorporates updated 2026 tax revenue projections and population data into the horizontal equalization formula
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Obligations
What this law requires
Federal Ministry of Finance must calculate and establish preliminary figures for horizontal fiscal equalization (Länderfinanzausgleich) for equalization year 2026, determining net contributor and net recipient states based on tax revenues and fiscal capacity
Federal Ministry of Finance must coordinate equalization calculations with all 16 state governments (Länder) to ensure accurate data integration
All federal and state fiscal authorities must apply the year-specific revenue data, population figures, and equalization indices established in this ordinance for equalization year 2026
Wealthier states (Bavaria, Baden-Württemberg, Hesse, Hamburg) must transfer calculated equalization funds to fiscally weaker states as determined by the ordinance
All state governments must receive and implement the equalization transfer amounts allocated to them as net recipients under this ordinance