Reform of Special Finance Act and regional fiscal autonomy

See Dutch version below.

Célia Nennen and Carl Kyndt (master students Advanced Study of Constitutional Law, UGent), Jurgen Goossens (doctoral researcher, UGent) and Pieter Cannoot (assistant, UGent)

Overview sixth state review: part 4 of 6

The institutional agreement on the sixth state reform announced a substantial reform regarding the financing of the federated entities. Consequently, the Special Finance Act of 6 January 2014 introduces more fiscal autonomy for the regions. Hereafter, the main principles of the reform will be explained.

afbeelding BFWDuring Belgium’s transformation into a federal state, a complex set of rules has been designed in order to finance the regions and communities. The third state reform of 1988 has led to the approval of the Special Finance Act. The Act established that the financing of the regions and communities mainly stems from allocated parts (‘dotations’) of the federal personal income tax and the value-added tax.

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