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Additional income transfers. Transfer payment

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    Australia[ edit ] In Australia, the horizontal fiscal imbalance arises because of the mismatch between the tax revenues and government expenses for the various state and territorial governments. This imbalance is addressed by a horizontal fiscal equalisation HFE policy overseen by the Commonwealth Grants Commission.

    Canada[ edit ] In Canada, Federal-Provincial transfers usually refer to a system of payments from the federal government to the provinces as part of Canada's "fiscal federalism" through explicit and implicit redistribution. There are also implicit transfers that result from federal taxation and spending decisions and policies.

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    Canada measures average fiscal capacity of each province which varies widely. All provinces pay the same federal tax rates.

    In the early s it was 3.

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    The government aims to establish a comprehensive, equitable, and unified pension system that covers both urban and rural residents by Inthe government decided to establish a unified health insurance system for additional income transfers rural and non-salaried urban residents. The government has also announced that medical insurance and maternity insurance programs will be merged. Most sources of payments are employers via provident fundsand the government.

    However, the U.

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