Vertical and Horizontal Distribution of Revenues and Forms of Intergovernmental Grants

On the first place, the author describes the main aspects of vertical and horizontal distribution of revenues. Secondly, a reader is acquainted with alternative forms of grants for local self-government. Grant distribution systems have two dimensions: the method of determining the size of the divisible pool and the method of determining the distribution among local governments. The attention is paid to four methods of allocating the divisible pool among eligible units: origin of collection of the tax, formula, total or partial reimbursement of costs, ad hoc decision