The municipal equalisation system
- The objective is to create the same economic conditions for all municipalities and county councils to be able to provide their inhabitants with the same public services regardless of their level of income and other structural factors.
- State subsidies, of which the equalisation system is part, account for approx. 23% of Malmö's revenues.
- Malmö is overall the municipality that receives most. We will receive just under SEK 5 billion in 2017. Just over fifty municipalities receive more than Malmö per inhabitant.
- On average, the system pays out around SEK 6,500 per inhabitant in Sweden. In 2017, Malmö will receive around SEK 15,000 per inhabitant.
- Eleven municipalities were net contributors, paying in a total of around SEK 6 billion to the equalisation system in 2017. The remaining 279 municipalities receive a total of around SEK 73 billion through the scheme. Most of the system is therefore financed by the state to the tune of around SEK 67 billion.
Malmö is the municipality with the overall biggest contribution via the equalisation system, receiving just under SEK 5 billion for 2017, mainly due to its low taxable capacity (i.e. the income per inhabitant is relatively low compared to the rest of the country) and that the population is relatively high.
Malmö will receive about SEK 15,000 per inhabitant in 2017, but there are just over 50 other municipalities that receive more per inhabitant. The municipality that receives the most per inhabitant in 2017 is Åsele in Västerbotten County, that will receive just under SEK 29,000 per inhabitant.
Only a few municipalities are net contributors to the system, a total of 11 out of 290 municipalities in 2017. The City of Stockholm is the biggest net contributor, with a total of just under SEK 4 billion in equalisation tax, whilst Danderyd is the municipality that pays the most per inhabitant (around SEK 16,000 each). In all 11 net contributor municipalities, the equalisation tax is the result of the high taxable capacity of the inhabitants, i.e. the income per inhabitant is relatively high compared to the rest of the county.