Part of the political dispute- and a key challenge to political decision makers- is the degree of autonomy in particular of the provincial and local spheres of government. In this context the extent of financial autonomy is decisive for political competence. Only a fairly even distribution of state revenue can ensure efficient, good quality, collaborative and accountable service delivery- It is for this reason that financial intergovernmental relations is the subject of intense political debate in decentralised states. In this policy paper Dirk Brand analyses financial intergovernmental relations. The paper presents and critically assesses the rules and regulations governing the topic and, where appropriate, makes comparisons with the German equalisation system.