hovedutjevningsforbindelse

Hovedutjevning, or main equalization, is a term used in public finance to denote the principal component of a system that aims to reduce differences in the financial capacity to provide public services across subnational units, such as municipalities or regions. The goal is to ensure comparable levels of core services for residents, regardless of local wealth or tax base.

Hovedutjevning typically operates through a central fund or budgetary mechanism that redistributes resources from wealthier to poorer units. Allocations are determined by a formula that may include factors such as population size, age structure, geographic cost factors, and differences in local revenue potential. The formula is updated periodically to reflect demographic and economic changes. The redistribution is designed to supplement local revenues and to adjust for variations in service needs and economies of scale.

It often forms part of a broader equalization framework that can include targeted grants for high-cost areas, service-specific funding, or grants for development and transition. The design is intended to preserve incentives for local revenue effort while preventing large disparities in service levels.

Implementation raises questions about adequacy, transparency, and administrative complexity. Critics may argue that it reduces local autonomy or creates dependency on central funding, while supporters contend it is necessary to ensure uniform service standards and social cohesion. The system is typically administered by a central government ministry or agency, with oversight and periodic review.