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Nettoverføring

Nettoverføring is a term used in public finance to describe the net amount of funds moved between different levels of government or between organizations, after accounting for all incoming and outgoing transfers. It represents the difference between transfers received and transfers paid, and indicates whether a unit is a net beneficiary or a net contributor within a fiscal system.

In practice, nettoverføring is often discussed in the context of intergovernmental transfers. For example, central governments

Calculation is typically stated as: nettoverføring = transfers received from other levels or units minus transfers paid

Limitations include variations in what is counted as a transfer, the treatment of in-kind support, and differences

may
provide
municipalities
or
regions
with
grants,
subsidies,
or
earmarked
funds,
while
municipalities
may
pay
contributions
or
share
costs
for
national
programs.
The
net
effect
on
the
recipient’s
budget
is
the
gain
or
shortfall
created
by
these
intergovernmental
transfers,
not
counting
the
unit’s
own
tax
revenue
or
other
non-transfer
income.
to
other
levels
or
units,
sometimes
adjusted
for
reimbursements,
repayments,
or
in-kind
contributions.
A
positive
value
means
the
unit
receives
more
from
others
than
it
pays
in,
while
a
negative
value
indicates
the
opposite.
The
concept
is
widely
used
in
budgetary
statistics,
fiscal
equalization
analyses,
and
macroeconomic
assessments
to
understand
dependence
on
external
funding
and
to
compare
fiscal
impact
across
regions
or
sectors.
in
accounting
practices
across
countries.
Nettoverføring
remains
a
useful,
though
context-dependent,
indicator
of
intergovernmental
fiscal
relations.
See
also
intergovernmental
transfers,
grants,
and
fiscal
equalization.