Belgium
The only mechanism designed to reduce fiscal disparities between the federated entities in Belgium is a program called the National Solidarity Intervention (Dutch: Nationale Solidariteitsbijdrage (NSB); French: Intervention de solidarité nationale (ISN)). Under the program, those Regions in which the average per capita yield of personal income tax falls below the national average are entitled to an unconditional transfer from the federal government.
The amount paid to each Region reflects the gap in the yield of personal income tax in the Region in relation to the national average, weighted by an indexing factor and a factor pertaining to the amounts received by beneficiaries when the system was introduced. Due to their inferior fiscal capacity, the Brussels and Walloon regions are recipients of NSB/ISN transfers. The region of Flanders does not receive funding under this program as its fiscal capacity lies above the national average.
Read more about this topic: Equalization Payments