Fiscal policy, including its expenditure aspect, is often discussed and analysed from a variety of angles in the literature on public finances, undoubtedly due to the major importance of this topic. However, not all areas of the expenditure part of fiscal policy have been subjected to in-depth...

Research background: General grants should pursue five different functions. One of them is revenue equalization. This function is achieved if the revenue gap is reduced after the application of the subsidising mechanism. The size of the support should be inversely proportional to own revenues....